NEWMONT MINING CORP /DE/, 10-K filed on 2/24/2011
Annual Report
Document and Entity Information
In Millions, except Share data
Year Ended
Dec. 31, 2010
Feb. 18, 2011
Jun. 30, 2010
Document and Entity Information [Abstract]
 
 
 
Entity Registrant Name
NEWMONT MINING CORP /DE/ 
 
 
Entity Central Index Key
0001164727 
 
 
Document Type
10-K 
 
 
Document Period End Date
2010-12-31 
 
 
Amendment Flag
FALSE 
 
 
Document Fiscal Year Focus
2010 
 
 
Document Fiscal Period Focus
Q4 
 
 
Current Fiscal Year End Date
12/31 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Public Float
 
 
30,366,217,467 
Entity Common Stock, Shares Outstanding
 
486,564,649 
 
Statements of Consolidated Income (USD $)
In Millions, except Per Share data
Year Ended
Dec. 31,
2010
2009
2008
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) [Abstract]
 
 
 
Sales
$ 9,540 
$ 7,705 
$ 6,124 
Costs and expenses
 
 
 
Costs applicable to sales (1)
3,484 1
3,008 1
3,038 1
Amortization
945 
806 
738 
Reclamation and remediation
65 
59 
142 
Exploration
218 
187 
213 
Advanced projects, research and development (Note 5)
216 
135 
166 
General and administrative
178 
159 
144 
Write-down of property, plant and mine development
137 
Other expense, net
261 
358 
240 
Total costs and expenses
5,373 
4,719 
4,818 
Other income (expense)
 
 
 
Other income, net
109 
88 
123 
Interest expense, net of capitalized interest of $21, $111 and $47, respectively
(279)
(120)
(135)
Total other income (expense)
(170)
(32)
(12)
Income before income and mining tax and other items
3,997 
2,954 
1,294 
Income and mining tax expense
(856)
(829)
(142)
Equity income (loss) of affiliates
(16)
(5)
Income from continuing operations
3,144 
2,109 
1,147 
Income from discontinued operations
(28)
(16)
13 
Net income
3,116 
2,093 
1,160 
Net income attributable to noncontrolling interests
(839)
(796)
(329)
Net income attributable to Newmont stockholders
2,277 
1,297 
831 
Net income attributable to Newmont stockholders
 
 
 
Continuing operations
2,305 
1,308 
816 
Discontinued operations
(28)
(11)
15 
Net income attributable to Newmont common stockholders
2,277 
1,297 
831 
Income per common share, basic
 
 
 
Continuing operations
4.69 
2.68 
1.80 
Discontinued operations
(0.06)
(0.02)
0.03 
Earnings per share basic
4.63 
2.66 
1.83 
Income per common share, diluted
 
 
 
Continuing operations
4.61 
2.68 
1.80 
Discontinued operations
(0.06)
(0.02)
0.03 
Earnings per share diluted
4.55 
2.66 
1.83 
Cash dividends declared per common share
0.50 
0.40 
0.40 
Capitalized interest
 
 
 
Capitalized interest
$ 21 
$ 111 
$ 47 
Statements of Consolidated Cash Flows (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
2008
Operating activities:
 
 
 
Net income
$ 3,116 
$ 2,093 
$ 1,160 
Adjustments:
 
 
 
Amortization
945 
806 
738 
Stock based compensation and other benefits
70 
57 
50 
Reclamation and remediation
65 
59 
142 
Revaluation of contingent consideration
23 
Loss (income) from discontinued operations
28 
16 
(13)
Write-down of property, plant and mine development
137 
Impairment of marketable securities
114 
Deferred income taxes
(380)
(315)
Gain on asset sales, net
(64)
(24)
(72)
Other operating adjustments and write-downs
145 
97 
83 
Net change in operating assets and liabilities
(754)
(227)
(627)
Net cash provided from continuing operations
3,180 
2,914 
1,397 
Net cash provided from (used in) discontinued operations
(13)
33 
(104)
Net cash provided from operations
3,167 
2,947 
1,293 
Investing activities:
 
 
 
Additions to property, plant and mine development
(1,402)
(1,769)
(1,870)
Acquisitions, net
(4)
(1,007)
(325)
Proceeds from sale of marketable securities
17 
50 
Purchases of marketable securities
(28)
(5)
(17)
Proceeds from sale of other assets
56 
18 
52 
Other
(44)
(35)
(36)
Net cash used in investing activities of continuing operations
(1,419)
(2,781)
(2,146)
Net cash used in investing activities of discontinued operations
(11)
Net cash used in investing activities
(1,419)
(2,781)
(2,157)
Financing activities:
 
 
 
Proceeds from debt, net
4,299 
5,078 
Repayment of debt
(430)
(2,731)
(4,483)
Proceeds from stock issuance, net
60 
1,278 
29 
Sale of subsidiary shares to noncontrolling interests
229 
638 
Acquisition of subsidiary shares from noncontrolling interests
(110)
(287)
Dividends paid to noncontrolling interests
(462)
(394)
(389)
Dividends paid to common stockholders
(246)
(196)
(182)
Change in restricted cash and other
44 
(35)
74 
Net cash provided from (used in) financing activities of continuing operations
(915)
2,572 
127 
Net cash used in financing activities of discontinued operations
(2)
(4)
Net cash provided from (used in) financing activities
(915)
2,570 
123 
Effect of exchange rate changes on cash
44 
(54)
Net change in cash and cash equivalents
841 
2,780 
(795)
Cash and cash equivalents at beginning of period
3,215 
435 
1,230 
Cash and cash equivalents at end of period
$ 4,056 
$ 3,215 
$ 435 
Consolidated Balance Sheets (USD $)
In Millions, except Share data
Year Ended
Dec. 31, 2010
Dec. 31, 2009
ASSETS
 
 
Cash and cash equivalents
$ 4,056 
$ 3,215 
Trade receivables
582 
438 
Accounts receivable
88 
102 
Investments
113 
56 
Inventories
658 
493 
Stockpiles and ore on leach pads
617 
403 
Deferred income tax assets
177 
215 
Other current assets
962 
900 
Current assets
7,253 
5,822 
Property, plant and mine development, net
12,907 
12,370 
Investments
1,568 
1,186 
Stockpiles and ore on leach pads
1,757 
1,502 
Deferred income tax assets
1,437 
937 
Other long-term assets
741 
482 
Total assets
25,663 
22,299 
LIABILITIES
 
 
Debt
259 
157 
Accounts payable
427 
396 
Employee-related benefits
288 
250 
Income and mining taxes
355 
200 
Other current liabilities
1,418 
1,317 
Current liabilities
2,747 
2,320 
Debt
4,182 
4,652 
Reclamation and remediation liabilities
984 
805 
Deferred income tax liabilities
1,488 
1,341 
Employee-related benefits
325 
381 
Other long-term liabilities
221 
187 
Total liabilities
9,947 
9,686 
Commitments and contingencies
Commitments and contingencies  
 
EQUITY
 
 
Common stock - $1.60 par value; Authorized - 750 million shares Issued and oustanding - Common: 487 million and 482 million shares issued, less 271,000 and 270,000 treasury shares, respectively Exchangeable: 56 million shares issued, less 49 million and 47 million redeemed shares, respectively
778 
770 
Additional paid-in capital
8,279 
8,158 
Accumulated other comprehensive income
1,108 
626 
Retained earnings
3,180 
1,149 
Newmont stockholders' equity
13,345 
10,703 
Noncontrolling interests
2,371 
1,910 
Total equity
15,716 
12,613 
Total liabilities and equity
$ 25,663 
$ 22,299 
EQUITY
 
 
Common stock, par value
1.60 
 
Common stock, shares authorized
750,000,000 
 
Common stock, shares issued
487,000,000 
482,000,000 
Treasury shares
271,000 
270,000 
Exchangeable common stock, shares issued
56,000,000 
 
Exchangeable common stock, shares redeemed
50,000,000 
47,000,000 
Statements of Consolidated Changes in Equity (USD $)
In Millions
Common Stock [Member]
Additional paid-in capital [Member]
Accumulated other comprehensive (loss) income [Member]
Retained earnings [Member]
Noncontrolling interests [Member]
Total
Beginning balance at Dec. 31, 2007
$ 696 
$ 6,916 
$ 957 
$ (810)
$ 1,449 
$ 9,208 
Beginning balance, shares at Dec. 31, 2007
453 
 
 
 
 
 
Statement Of Stockholders Equity [Abstract]
 
 
 
 
 
 
Net income
 
 
 
831 
329 
1,160 
Other comprehensive (loss) income
 
 
(1,210)
 
(2)
(1,212)
Dividends paid
 
(165)
 
(17)
(389)
(571)
Acquisition of subsidiary shares from noncontrolling interests
 
 
 
 
(17)
(17)
Stock based awards and related share issuances
91 
 
 
 
93 
Stock based awards and related share issuances, shares
 
 
 
 
 
Shares issued in exchange for exchangeable shares
11 
(11)
 
 
 
Ending balance at Dec. 31, 2008
709 
6,831 
(253)
1,370 
8,661 
Ending balance, shares at Dec. 31, 2008
455 
 
 
 
 
 
Statement Of Stockholders Equity [Abstract]
 
 
 
 
 
 
Net income
 
 
 
1,297 
796 
2,093 
Other comprehensive (loss) income
 
 
879 
 
882 
Dividends paid
 
(44)
 
(152)
(394)
(590)
Common stock offering
55 
1,179 
 
 
 
1,234 
Common stock offering, shares
34 
 
 
 
 
 
Convertible debt issuance
 
46 
 
 
 
46 
Sale of subsidiary shares to noncontrolling interests
 
63 
 
 
467 
530 
Acquisition of subsidiary shares from noncontrolling interests
 
 
 
 
(332)
(332)
Stock based awards and related share issuances
86 
 
 
 
89 
Stock based awards and related share issuances, shares
 
 
 
 
 
Shares issued in exchange for exchangeable shares
(3)
 
 
 
Ending balance at Dec. 31, 2009
770 
8,158 
626 
1,149 
1,910 
12,613 
Ending balance, shares at Dec. 31, 2009
491 
 
 
 
 
 
Statement Of Stockholders Equity [Abstract]
 
 
 
 
 
 
Net income
 
 
 
2,277 
839 
3,116 
Other comprehensive (loss) income
 
 
482 
 
484 
Dividends paid
 
 
 
(246)
(476)
(722)
Sale of subsidiary shares to noncontrolling interests
 
16 
 
 
183 
199 
Acquisition of subsidiary shares from noncontrolling interests
 
 
 
 
(87)
(87)
Stock based awards and related share issuances
109 
 
 
 
113 
Stock based awards and related share issuances, shares
 
 
 
 
 
Shares issued in exchange for exchangeable shares
(4)
 
 
 
Ending balance at Dec. 31, 2010
$ 778 
$ 8,279 
$ 1,108 
$ 3,180 
$ 2,371 
$ 15,716 
Ending balance, shares at Dec. 31, 2010
493 
 
 
 
 
 
Statements of Consolidated Comprehensive Income (Loss) (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
2008
Statement of Income and Comprehensive Income [Abstract]
 
 
 
Net income
$ 3,116 
$ 2,093 
$ 1,160 
Other comprehensive income (loss):
 
 
 
Unrealized gain (loss) on marketable securities, net of $(60), $(82) and $105 tax benefit (expense), respectively
269 
418 
(573)
Foreign currency translation adjustments
98 
264 
(387)
Change in pension and other post-retirement benefits, net of $7, $(7) and $69 tax benefit (expense), respectively
 
 
 
Net change from periodic revaluations
(23)
(139)
Net amount reclassified to income
10 
10 
Net unrecognized gain (loss) on pension and other post-retirement benefits
(13)
14 
(130)
Change in fair value of cash flow hedge instruments, net of $(59), $(82) and $53 tax benefit (expense), respectively
 
 
 
Net change from periodic revaluations
202 
183 
(127)
Net amount reclassified to income
(72)
Net unrecognized gain (loss) on derivatives
130 
186 
(122)
Other comprehensive income (loss)
484 
882 
(1,212)
Comprehensive income (loss)
3,600 
2,975 
(52)
Comprehensive income (loss) attributable to:
 
 
 
Newmont stockholders
2,759 
2,176 
(379)
Noncontrolling interests
841 
799 
327 
Comprehensive income (loss)
3,600 
2,975 
(52)
Other comprehensive income (loss) tax:
 
 
 
Unrealized gain (loss) on marketable securities tax
(60)
(82)
105 
Change in pension and other post-retirement benefits tax
(7)
69 
Change in fair value of cash flow hedge instruments tax
$ (59)
$ (82)
$ 53 
The Company
THE COMPANY

NOTE 1    THE COMPANY

 

Newmont Mining Corporation and its affiliates and subsidiaries (collectively, “Newmont” or the “Company”) predominantly operates in the mining industry, focused on the exploration for and production of gold and copper. The Company has significant assets in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand and Mexico. The cash flow and profitability of the Company's operations are significantly affected by the market price of gold, and to a lesser extent, copper. The prices of gold and copper are affected by numerous factors beyond the Company's control.

 

References to “A$” refers to Australian currency, “C$” to Canadian currency, “NZ$” to New Zealand currency, “IDR” to Indonesian currency and “$” to United States currency.

 

Summary of Significant Accounting Policies
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Use of Estimates

 

The Company's Consolidated Financial Statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”). The preparation of the Company's Consolidated Financial Statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to mineral reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of-production amortization calculations; environmental, reclamation and closure obligations; estimates of recoverable gold and other minerals in stockpile and leach pad inventories; estimates of fair value for certain reporting units and asset impairments (including impairments of goodwill, long-lived assets and investments); write-downs of inventory, stockpiles and ore on leach pads to net realizable value; post-employment, post-retirement and other employee benefit liabilities; valuation allowances for deferred tax assets; reserves for contingencies and litigation; and the fair value and accounting treatment of financial instruments including marketable securities and derivative instruments. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates under different assumptions or conditions.

 

Principles of Consolidation

 

The Consolidated Financial Statements include the accounts of Newmont Mining Corporation and more-than-50%-owned subsidiaries that it controls and entities over which control is achieved through means other than voting rights. The Company also includes its pro-rata share of assets, liabilities and operations for unincorporated joint ventures in which it has an interest. All significant intercompany balances and transactions have been eliminated. The functional currency for the majority of the Company's operations, including the Australian operations, is the U.S. dollar.

 

The Company follows FASB Accounting Standards Codification (“ASC”) guidance for identification and reporting of entities over which control is achieved through means other than voting rights. The guidance defines such entities as Variable Interest Entities (“VIEs”). Newmont identified the Nusa Tenggara Partnership (“NTP”), a partnership between Newmont and an affiliate of Sumitomo, that owns a 56% interest in PT Newmont Nusa Tenggara (“PTNNT” or “Batu Hijau”), as a VIE due to certain capital structures and contractual relationships. Newmont also identified PT Pukuafu Indah (“PTPI”) and PT Indonesia Masbaga Investama (“PTIMI”), unrelated noncontrolling partners of PTNNT, as VIEs. Newmont entered into transactions with PTPI and PTIMI, whereby the Company agreed to advance certain funds in exchange for a pledge of the noncontrolling partners' combined 20% share of PTNNT dividends, net of withholding tax. The agreements also provide Newmont with certain voting rights and obligations related to the noncontrolling partners' combined 20% share of PTNNT and commitments from PTPI and PTIMI to support the application of Newmont's standards to the operation of the Batu Hijau mine. The Company has determined itself to be the primary beneficiary of these entities and controls the operations of Batu Hijau, and therefore consolidates PTNNT in the Company's financial statements.

 

Cash and Cash Equivalents

 

Cash and cash equivalents consist of all cash balances and highly liquid investments with an original maturity of three months or less. Because of the short maturity of these investments, the carrying amounts approximate their fair value. Cash and cash equivalents are invested in United States Treasury securities and money market securities. Restricted cash is excluded from cash and cash equivalents and is included in other current and long-term assets.

 

Investments

 

Management determines the appropriate classification of its investments in equity securities at the time of purchase and reevaluates such determinations at each reporting date. Investments in incorporated entities in which the Company's ownership is greater than 20% and less than 50%, or which the Company does not control through majority ownership or means other than voting rights, are accounted for by the equity method and are included in long-term assets. The Company accounts for its equity security investments as available for sale securities in accordance with ASC guidance on accounting for certain investments in debt and equity securities. The Company periodically evaluates whether declines in fair values of its investments below the Company's carrying value are other-than-temporary in accordance with guidance for the meaning of other-than-temporary impairment and its application to certain investments. The Company's policy is to generally treat a decline in the investment's quoted market value that has lasted continuously for more than six months as an other-than-temporary decline in value. The Company also monitors its investments for events or changes in circumstances that have occurred that may have a significant adverse effect on the fair value of the investment and evaluates qualitative and quantitative factors regarding the severity and duration of the unrealized loss and the Company's ability to hold the investment until a forecasted recovery occurs to determine if the decline in value of an investment is other-than-temporary. Declines in fair value below the Company's carrying value deemed to be other-than-temporary are charged to earnings. Additional information concerning the Company's equity method and security investments is included in Note 18.

 

Stockpiles, Ore on Leach Pads and Inventories

 

As described below, costs that are incurred in or benefit the productive process are accumulated as stockpiles, ore on leach pads and inventories. Stockpiles, ore on leach pads and inventories are carried at the lower of average cost or net realizable value. Net realizable value represents the estimated future sales price of the product based on current and long-term metals prices, less the estimated costs to complete production and bring the product to sale. Write-downs of stockpiles, ore on leach pads and inventories, resulting from net realizable value impairments, are reported as a component of Costs applicable to sales. The current portion of stockpiles, ore on leach pads and inventories is determined based on the expected amounts to be processed within the next 12 months. Stockpiles, ore on leach pads and inventories not expected to be processed within the next 12 months are classified as long-term. The major classifications are as follows:

 

Stockpiles

 

Stockpiles represent ore that has been extracted from the mine and is available for further processing. Stockpiles are measured by estimating the number of tons added and removed from the stockpile, the number of contained ounces or pounds (based on assay data) and the estimated metallurgical recovery rates (based on the expected processing method). Stockpile ore tonnages are verified by periodic surveys. Costs are allocated to stockpiles based on relative values of material stockpiled and processed using current mining costs incurred up to the point of stockpiling the ore, including applicable overhead and amortization relating to mining operations, and removed at each stockpile's average cost per recoverable unit.

 

Ore on Leach Pads

 

The recovery of gold from certain gold oxide ores is achieved through the heap leaching process. Under this method, oxide ore is placed on leach pads where it is treated with a chemical solution, which dissolves the gold contained in the ore. The resulting gold-bearing solution is further processed in a plant where the gold is recovered. Costs are added to ore on leach pads based on current mining costs, including applicable amortization relating to mining operations. Costs are removed from ore on leach pads as ounces are recovered based on the average cost per estimated recoverable ounce of gold on the leach pad.

 

The estimates of recoverable gold on the leach pads are calculated from the quantities of ore placed on the leach pads (measured tons added to the leach pads), the grade of ore placed on the leach pads (based on assay data) and a recovery percentage (based on ore type). In general, leach pads recover between 50% and 95% of the recoverable ounces in the first year of leaching, declining each year thereafter until the leaching process is complete.

 

Although the quantities of recoverable gold placed on the leach pads are reconciled by comparing the grades of ore placed on pads to the quantities of gold actually recovered (metallurgical balancing), the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored and estimates are refined based on actual results over time. Historically, the Company's operating results have not been materially impacted by variations between the estimated and actual recoverable quantities of gold on its leach pads. Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis.

 

In-process Inventory

 

In-process inventories represent materials that are currently in the process of being converted to a saleable product. Conversion processes vary depending on the nature of the ore and the specific processing facility, but include mill in-circuit, leach in-circuit, flotation and column cells, and carbon in-pulp inventories. In-process material is measured based on assays of the material fed into the process and the projected recoveries of the respective plants. In-process inventories are valued at the average cost of the material fed into the process attributable to the source material coming from the mines, stockpiles and/or leach pads plus the in-process conversion costs, including applicable amortization relating to the process facilities incurred to that point in the process.

 

Precious Metals Inventory

 

Precious metals inventories include gold doré and/or gold bullion. Precious metals that result from the Company's mining and processing activities are valued at the average cost of the respective in-process inventories incurred prior to the refining process, plus applicable refining costs.

 

Concentrate Inventory

 

Concentrate inventories represent copper and gold concentrate available for shipment. The Company values concentrate inventory at the average cost, including an allocable portion of support costs and amortization. Costs are added and removed to the concentrate inventory based on tons of concentrate and are valued at the lower of average cost or net realizable value.

 

Materials and Supplies

 

Materials and supplies are valued at the lower of average cost or net realizable value. Cost includes applicable taxes and freight.

 

Property, Plant and Mine Development

 

Facilities and equipment

 

Expenditures for new facilities or equipment and expenditures that extend the useful lives of existing facilities or equipment are capitalized and recorded at cost. The facilities and equipment are amortized using the straight-line method at rates sufficient to amortize such costs over the estimated productive lives, which do not exceed the related estimated mine lives, of such facilities based on proven and probable reserves.

 

Mine Development

 

Mine development costs include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, the removal of overburden to initially expose an ore body at open pit surface mines and the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure at underground mines. Costs incurred before mineralization are classified as proven and probable reserves are expensed and classified as Exploration or Advanced projects, research and development expense. Capitalization of mine development project costs, that meet the definition of an asset, begins once mineralization is classified as proven and probable reserves.

 

Drilling and related costs are capitalized for an ore body where proven and probable reserves exist and the activities are directed at obtaining additional information on the ore body or converting non-reserve mineralization to proven and probable reserves and the benefit is expected to be realized over a period beyond one year. All other drilling and related costs are expensed as incurred. Drilling costs incurred during the production phase for operational ore control are allocated to inventory costs and then included as a component of Costs applicable to sales.

 

The cost of removing overburden and waste materials to access the ore body at an open pit mine prior to the production phase are referred to as “pre-stripping costs.” Pre-stripping costs are capitalized during the development of an open pit mine. Where multiple open pits exist at a mining complex utilizing common processing facilities, pre-stripping costs are capitalized at each pit. The removal, production, and sale of de minimis saleable materials may occur during development and are recorded as Other income, net of incremental mining and processing costs.

 

The production phase of an open pit mine commences when saleable minerals, beyond a de minimis amount, are produced. Stripping costs incurred during the production phase of a mine are variable production costs that are included as a component of inventory to be recognized in Costs applicable to sales in the same period as the revenue from the sale of inventory. The Company's definition of a mine and the mine's production phase may differ from that of other companies in the mining industry resulting in incomparable allocations of stripping costs to deferred mine development and production costs. Other mining companies may expense pre-stripping costs associated with subsequent pits within a mining complex.

 

Mine development costs are amortized using the units-of-production (“UOP”) method based on estimated recoverable ounces or pounds in proven and probable reserves. To the extent that these costs benefit an entire ore body, they are amortized over the estimated life of the ore body. Costs incurred to access specific ore blocks or areas that only provide benefit over the life of that area are amortized over the estimated life of that specific ore block or area.

 

Mineral Interests

 

Mineral interests include acquired interests in production, development and exploration stage properties. The mineral interests are capitalized at their fair value at the acquisition date, either as an individual asset purchase or as part of a business combination.

 

The value of such assets is primarily driven by the nature and amount of mineralized material believed to be contained in such properties. Production stage mineral interests represent interests in operating properties that contain proven and probable reserves. Development stage mineral interests represent interests in properties under development that contain proven and probable reserves. Exploration stage mineral interests represent interests in properties that are believed to potentially contain mineralized material consisting of (i) mineralized material such as inferred material within pits; measured, indicated and inferred material with insufficient drill spacing to qualify as proven and probable reserves; and inferred material in close proximity to proven and probable reserves; (ii) around-mine exploration potential such as inferred material not immediately adjacent to existing reserves and mineralization, but located within the immediate mine area; (iii) other mine-related exploration potential that is not part of measured, indicated or inferred material and is comprised mainly of material outside of the immediate mine area; (iv) greenfields exploration potential that is not associated with any other production, development or exploration stage property, as described above; or (v) any acquired right to explore or extract a potential mineral deposit. The Company's mineral rights generally are enforceable regardless of whether proven and probable reserves have been established. In certain limited situations, the nature of a mineral right changes from an exploration right to a mining right upon the establishment of proven and probable reserves. The Company has the ability and intent to renew mineral interests where the existing term is not sufficient to recover all identified and valued proven and probable reserves and/or undeveloped mineralized material.

 

Asset Impairment

 

The Company reviews and evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. An impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets, including goodwill, if any. An impairment loss is measured and recorded based on discounted estimated future cash flows. Future cash flows are estimated based on quantities of recoverable minerals, expected gold and other commodity prices (considering current and historical prices, trends and related factors), production levels, operating costs, capital requirements and reclamation costs, all based on life-of-mine plans. Existing proven and probable reserves and value beyond proven and probable reserves, including mineralization that is not part of the measured, indicated or inferred resource base, are included when determining the fair value of mine site reporting units at acquisition and, subsequently, in determining whether the assets are impaired. The term “recoverable minerals” refers to the estimated amount of gold or other commodities that will be obtained after taking into account losses during ore processing and treatment. Estimates of recoverable minerals from such exploration stage mineral interests are risk adjusted based on management's relative confidence in such materials. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. The Company's estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold and other commodity prices, production levels and costs and capital are each subject to significant risks and uncertainties.

 

Revenue Recognition

 

Revenue is recognized, net of treatment and refining charges, from a sale when persuasive evidence of an arrangement exists, the price is determinable, the product has been delivered, the title has been transferred to the customer and collection of the sales price is reasonably assured. Revenues from by-product sales are credited to Costs applicable to sales as a by-product credit.

 

Concentrate sales are initially recorded based on 100% of the provisional sales prices. Until final settlement occurs, adjustments to the provisional sales prices are made to take into account the mark-to-market changes based on the forward prices for the estimated month of settlement. For changes in metal quantities upon receipt of new information and assay, the provisional sales quantities are adjusted as well. The principal risks associated with recognition of sales on a provisional basis include metal price fluctuations between the date initially recorded and the date of final settlement. If a significant decline in metal prices occurs between the provisional pricing date and the final settlement date, it is reasonably possible that the Company could be required to return a portion of the sales proceeds received based on the provisional invoice.

 

The Company's sales based on a provisional price contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the concentrates at the forward exchange price at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement.

 

Income and Mining Taxes

 

The Company accounts for income taxes using the liability method, recognizing certain temporary differences between the financial reporting basis of the Company's liabilities and assets and the related income tax basis for such liabilities and assets. This method generates either a net deferred income tax liability or asset for the Company, as measured by the statutory tax rates in effect. The Company derives its deferred income tax charge or benefit by recording the change in either the net deferred income tax liability or asset balance for the year. Mining taxes represent state and provincial taxes levied on mining operations and are classified as income taxes; as such taxes are based on a percentage of mining profits. With respect to the earnings that the Company derives from the operations of its consolidated subsidiaries, in those situations where the earnings are indefinitely reinvested, no deferred taxes have been provided on the unremitted earnings (including the excess of the carrying value of the net equity of such entities for financial reporting purposes over the tax basis of such equity) of these consolidated companies.

 

The Company's deferred income tax assets include certain future tax benefits. The Company records a valuation allowance against any portion of those deferred income tax assets when it believes, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized.

 

The Company's operations involve dealing with uncertainties and judgments in the application of complex tax regulations in multiple jurisdictions. The final taxes paid are dependent upon many factors, including negotiations with taxing authorities in various jurisdictions and resolution of disputes arising from federal, state, and international tax audits. The Company recognizes potential liabilities and records tax liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. The Company adjusts these reserves in light of changing facts and circumstances; however, due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the Company's current estimate of the tax liabilities. If the Company's estimate of tax liabilities proves to be less than the ultimate assessment, an additional charge to expense would result. If the estimate of tax liabilities proves to be greater than the ultimate assessment, a tax benefit would result. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in Income and mining tax expense.

 

Reclamation and Remediation Costs

 

Reclamation obligations are recognized when incurred and recorded as liabilities at fair value. The liability is accreted over time through periodic charges to earnings. In addition, the asset retirement cost is capitalized as part of the asset's carrying value and amortized over the life of the related asset. Reclamation costs are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation and abandonment costs. The reclamation obligation is based on when spending for an existing environmental disturbance will occur. The Company reviews, on an annual basis, unless otherwise deemed necessary, the reclamation obligation at each mine site in accordance with ASC guidance for accounting reclamation obligations.

 

Future remediation costs for inactive mines are accrued based on management's best estimate at the end of each period of the costs expected to be incurred at a site. Such cost estimates include, where applicable, ongoing care, maintenance and monitoring costs. Changes in estimates at inactive mines are reflected in earnings in the period an estimate is revised.

 

Foreign Currency

 

The functional currency for the majority of the Company's operations, including the Australian operations, is the U.S. dollar. All monetary assets and liabilities where the functional currency is the U.S. dollar are translated at current exchange rates and the resulting adjustments are included in Other income, net. All monetary assets and liabilities recorded in functional currencies other than U.S. dollars are translated at current exchange rates and the resulting adjustments are charged or credited directly to Accumulated other comprehensive income in Equity. Revenues and expenses in foreign currencies are translated at the weighted-average exchange rates for the period.

 

Derivative Instruments

 

Newmont has fixed forward contracts designated as cash flow hedges in place to hedge against changes in foreign exchanges rates and diesel prices and fixed to floating interest rate swap contracts designated as fair value hedges to provide balance to the Company's mix of fixed and floating rate debt. The fair value of derivative contracts qualifying as cash flow hedges are reflected as assets or liabilities in the balance sheet. To the extent these hedges are effective in offsetting forecasted cash flows from production costs (the “effective portion”), changes in fair value are deferred in Accumulated other comprehensive income. Amounts deferred in Accumulated other comprehensive income are reclassified to Costs applicable to sales, as applicable, when the hedged transaction has occurred. The ineffective portion of the change in the fair value of the derivative is recorded in Other income, net in each period. Cash transactions related to the Company's derivative contracts accounted for as hedges are classified in the same category as the item being hedged in the statement of cash flows.

 

When derivative contracts qualifying as cash flow hedges are settled, accelerated or restructured before the maturity date of the contracts, the related amount in Accumulated other comprehensive income at the settlement date is deferred and reclassified to earnings, as applicable, when the originally designated hedged transaction impacts earnings.

 

The fair value of derivative contracts qualifying as fair value hedges are reflected as assets or liabilities in the balance sheet. Changes in fair value are recorded in income in each period, consistent with recording changes to the mark-to-market value of the underlying hedged asset or liability in income. Changes in the mark-to-market value of the effective portion of interest rate swaps utilized by the Company to swap a portion of its fixed rate interest rate risk to floating rate risk are recognized as a component of Interest expense, net.

 

Newmont assesses the effectiveness of the derivative contracts periodically using either regression analysis or the dollar offset approach, both retrospectively and prospectively, to determine whether the hedging instruments have been highly effective in offsetting changes in the fair value of the hedged items. The Company will also assess periodically whether the hedging instruments are expected to be highly effective in the future. If a hedging instrument is not expected to be highly effective, the Company will stop hedge accounting prospectively. In those instances, the gains or losses remain in Accumulated other comprehensive income until the hedged item affects earnings.

 

The ASC guidance for derivatives and hedging was updated for enhanced disclosures about how and why an entity uses derivative instruments, how derivative instruments and the related hedged items are accounted for, and how derivative instruments and the related hedged items affect an entity's financial position, financial performance and cash flows. The Company adopted the updated guidance on January 1, 2009.

 

Net Income per Common Share

 

Basic and diluted income per share are presented for Net income attributable to Newmont stockholders and for Income from continuing operations attributable to Newmont stockholders. Basic income per share is computed by dividing income available to common shareholders by the weighted-average number of outstanding common shares for the period, including the exchangeable shares (see Notes 14 and 23). Diluted income per share reflects the potential dilution that could occur if securities or other contracts that may require the issuance of common shares in the future were converted. Diluted income per share is computed by increasing the weighted-average number of outstanding common shares to include the additional common shares that would be outstanding after conversion and adjusting net income for changes that would result from the conversion. Only those securities or other contracts that result in a reduction in earnings per share are included in the calculation.

 

Comprehensive Income

 

In addition to Net income, Comprehensive income (loss) includes all changes in equity during a period, such as adjustments to minimum pension liabilities, foreign currency translation adjustments, the effective portion of changes in fair value of derivative instruments that qualify as cash flow hedges and cumulative unrecognized changes in fair value of marketable securities available-for-sale or other investments, except those resulting from investments by and distributions to owners.

 

Reclassifications

 

Certain amounts in prior years have been reclassified to conform to the 2010 presentation. The Company reclassified certain income based state and provincial taxes from Costs applicable to sales to Income and mining tax expense, and reclassified reclamation accretion and estimate revisions for non-operating sites from Other expense, net to Reclamation and remediation.

Recently Adopted Accounting Pronouncements

 

Variable Interest Entities

In June 2009, the ASC guidance for consolidation accounting was updated to require an entity to perform a qualitative analysis to determine whether the enterprise's variable interest gives it a controlling financial interest in a VIE. This qualitative analysis identifies the primary beneficiary of a VIE as the entity that has both of the following characteristics: (i) the power to direct the activities of a VIE that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses or receive benefits from the entity that could potentially be significant to the VIE. The updated guidance also requires ongoing reassessments of the primary beneficiary of a VIE. Adoption of the updated guidance, effective for the Company's fiscal year beginning January 1, 2010, had no impact on the Company's consolidated financial position, results of operations or cash flows.

Fair Value Accounting

In January 2010, ASC guidance for fair value measurements and disclosure was updated to require additional disclosures related to transfers in and out of level 1 and 2 fair value measurements. The guidance was amended to clarify the level of disaggregation required for assets and liabilities and the disclosures required for inputs and valuation techniques used to measure the fair value of assets and liabilities that fall in either level 2 or level 3. The updated guidance was effective for the Company's fiscal year beginning January 1, 2010. The adoption had no impact on the Company's consolidated financial position, results of operations or cash flows. Refer to Note 16 for further details regarding the Company's assets and liabilities measured at fair value.

Recently Issued Accounting Pronouncements

 

Business Combinations

 

In December 2010, the ASC guidance for business combinations was updated to clarify existing guidance which requires a public entity to disclose pro forma revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual period only. The update also expands the supplemental pro forma disclosures required to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. The updated guidance is effective for the Company's fiscal year beginning January 1, 2011. The Company is evaluating the potential impact of adopting this guidance on the Company's consolidated financial position, results of operations and cash flows.

 

Fair Value Accounting

 

In January 2010, the ASC guidance for fair value measurements and disclosure was updated to require enhanced detail in the level 3 reconciliation. The updated guidance is effective for the Company's fiscal year beginning January 1, 2011. The Company expects minimal impact from adopting this guidance.

 

Segment Information
SEGMENT INFORMATION

NOTE 3    SEGMENT INFORMATION

 

The Company predominantly operates in a single industry, namely exploration for and production of gold. The Company's reportable segments are based upon the Company's management structure that is focused on the geographic region for the Company's operations and include North America, South America, Asia Pacific, Africa and Corporate and Other. The Company's major operations include Nevada, Yanacocha, Boddington, Batu Hijau, Other Australia/New Zealand and Ahafo. The Company identifies its reportable segments as those consolidated mining operations or functional groups that represent more than 10% of the combined revenue, profit or loss or total assets of all reported operating segments. Consolidated mining operations or functional groups not meeting this threshold are aggregated at the applicable geographic region or corporate level for segment reporting purposes. Earnings from operations do not reflect general corporate expenses, interest (except project-specific interest) or income and mining taxes (except for equity investments). Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. The financial information relating to the Company's segments is as follows:

 

     Costs    Advanced         
     Applicable to    Projects and Pre-Tax Total Capital
   Sales Sales Amortization Exploration Income Assets Expenditures(1)
Year Ended December 31, 2010                   
Nevada$2,111 $974 $271 $85 $738 $3,387 $298
La Herradura 217  73  19  6  118  216  41
Hope Bay -  -  13  98  (111)  2,152  115
Other North America -  -  1  1  (1)  112  -
 North America 2,328  1,047  304  190  744  5,867  454
                       
Yanacocha 1,778  630  162  24  893  2,682  167
Other South America -  -  1  38  (34)  292  134
 South America 1,778  630  163  62  859  2,974  301
                       
Boddington:                    
 Gold 834  400  113            
 Copper 162  93  25            
  Total Boddington 996  493  138  6  304  4,323  146
Batu Hijau:                    
 Gold 776  155  42            
 Copper 1,686  337  90            
  Total Batu Hijau 2,462  492  132  3  1,736  3,398  67
Other Australia/New Zealand 1,321  585  108  31  575  1,025  176
Other Asia Pacific -  -  2  19  (14)  535  17
 Asia Pacific 4,779  1,570  380  59  2,601  9,281  406
                       
Ahafo 655  237  78  24  298  1,055  109
Other Africa -  -  -  9  (10)  291  70
 Africa 655  237  78  33  288  1,346  179
                       
Corporate and Other -  -  20  90  (495)  6,195  34
Consolidated$9,540 $3,484 $945 $434 $3,997 $25,663 $1,374
                       
 (1)Accrual basis includes a decrease in accrued capital expenditures of $28; consolidated capital expenditures on a cash basis were $1402.

      Costs    Advanced         
      Applicable to    Projects and Pre-Tax Total Capital
   Sales Sales Amortization Exploration Income Assets Expenditures(1)
Year Ended December 31, 2009                    
Nevada$1,943 $1,019 $261 $54 $583 $3,236 $205
La Herradura 113  42  11  3  57  137  54
Hope Bay -  -  12  66  (77)  1,862  5
Other North America -  -  -  2  (7)  55  -
 North America 2,056  1,061  284  125  556  5,290  264
                       
Yanacocha 2,013  642  168  23  1,089  2,472  119
Other South America -  -  -  23  1  32  27
 South America 2,013  642  168  46  1,090  2,504  146
                       
Boddington                    
 Gold 101  45  15            
 Copper 27  16  4            
  Total Boddington 128  61  19  32  (59)  3,975  1,093
Batu Hijau:                    
 Gold 550  118  30            
 Copper 1,292  307  78            
  Total Batu Hijau 1,842  425  108  -  1,242  3,129  44
Other Australia/New Zealand 1,138  577  136  21  374  870  122
Other Asia Pacific -  -  3  12  (50)  256  3
 Asia Pacific 3,108  1,063  266  65  1,507  8,230  1,262
                       
Ahafo 528  242  68  13  178  985  75
Other Africa -  -  -  10  (7)  202  10
 Africa 528  242  68  23  171  1,187  85
                       
Corporate and Other  -  -  20  63  (370)  5,088  16
Consolidated$7,705 $3,008 $806 $322 $2,954 $22,299 $1,773
                       
 (1)Accrual basis includes an increase in accrued capital expenditures of $4; consolidated capital expenditures on a cash basis were $1769.

      Costs    Advanced         
      Applicable to    Projects and Pre-Tax Total Capital
   Sales Sales Amortization Exploration Income Assets(1) Expenditures(2)
Year Ended December 31, 2008                    
Nevada$1,929 $993 $246 $50 $591 $3,215 $299
La Herradura 83  38  8  6  32  90  27
Hope Bay -  -  1  59  (59)  1,621  82
Other North America -  -  -  29  (163)  52  -
 North America 2,012  1,031  255  144  401  4,978  408
                       
Yanacocha 1,613  637  170  28  694  1,902  202
Other South America -  -  -  38  (8)  30  34
 South America 1,613  637  170  66  686  1,932  236
                       
Boddington -  -  -  10  (13)  1,735  815
Batu Hijau:                    
 Gold 261  124  25            
 Copper 752  399  80            
  Total Batu Hijau 1,013  523  105  2  301  2,371  83
Other Australia/New Zealand 1,050  642  122  24  268  819  130
Other Asia Pacific -  -  3  16  (101)  87  2
 Asia Pacific 2,063  1,165  230  52  455  5,012  1,030
                       
Ahafo 435  205  63  18  145  984  109
Other Africa -  -  -  31  (31)  197  2
 Africa 435  205  63  49  114  1,181  111
                       
Corporate and Other  1  -  20  68  (362)  2,624  20
Consolidated$6,124 $3,038 $738 $379 $1,294 $15,727 $1,805
                       
 (1)Corporate and Other includes $73 of Assets held for sale.
 (2)Accrual basis includes a decrease in accrued capital expenditures of $65; consolidated capital expenditures on a cash basis were $1870.

   Years Ended December 31, 
   2010 2009 2008 
Write-down of property, plant and mine development:          
 Nevada   $4 $1 $4 
 Yanacocha    -  1  - 
 Batu Hijau    1  4  10 
 Other Australia/New Zealand    1  1  2 
 Corporate and other    -  -  121 
   $6 $7 $137 

   At December 31, 
   2010 2009 
Stockpiles and ore on leach pads:       
 Nevada $479 $445 
 La Herradura  6  5 
 Yanacocha  496  369 
 Boddington  248  59 
 Batu Hijau  879  834 
 Other Australia/New Zealand  145  121 
 Ahafo  121  72 
   $2,374 $1,905 

Revenues from export and domestic sales were as follows:
            
   Years Ended December 31, 
   2010 2009 2008 
 Europe   $6,209 $5,573 $4,756 
 Japan    1,544  833  464 
 Korea    760  465  231 
 Indonesia    372  440  307 
 Mexico  217  113  83 
 Australia    110  222  170 
 India    -  30  32 
 Other    328  29  81 
   $9,540 $7,705 $6,124 

As gold can be sold through numerous gold market traders worldwide, the Company is not economically dependent on a limited number of customers for the sale of its product. In 2010, 2009 and 2008, sales to Bank of Nova Scotia were $2,435 (32%), $2,658 (42%) and $1,618 (30%), respectively, of total gold sales. Additionally in 2008, the Company had sales to BNP Paribas that totaled $1,239 (23%) of total gold sales.

 

Long-lived assets, excluding deferred tax assets, investments and restricted cash, were as follows:

 

  At December 31, 
  2010 2009 
Australia   $5,055 $4,683 
United States    3,031  3,059 
Canada    2,088  1,869 
Indonesia    2,109  2,067 
Peru    1,772  1,443 
Ghana    1,231  1,093 
Other    94  70 
  $15,380 $14,284 
Reclamation and Remediation
RECLAMATION AND REMEDIATION

NOTE 4    RECLAMATION AND REMEDIATION

 

The Company's mining and exploration activities are subject to various federal and state laws and regulations governing the protection of the environment. These laws and regulations are continually changing and are generally becoming more restrictive. The Company conducts its operations to protect public health and the environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures. Estimated future reclamation costs are based principally on legal and regulatory requirements.

 

At December 31, 2010 and 2009, $904 and $698, respectively, were accrued for reclamation obligations relating to mineral properties. In addition, the Company is involved in several matters concerning environmental obligations associated with former, primarily historic, mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. At December 31, 2010 and 2009, $144 and $161, respectively, were accrued for such obligations. These amounts are also included in Reclamation and remediation liabilities.

 

Included in Other long-term assets at December 31, 2010 and 2009 is $12 and $11, respectively, of restricted cash that is legally restricted for purposes of settling asset retirement obligations related to the Con mine in Yellowknife, NWT, Canada. Included in Investments at December 31, 2010 and 2009 are $10 and $10 of long-term marketable debt securities, respectively, and $6 and $5 long-term marketable equity securities, respectively, which are legally pledged for purposes of settling asset retirement obligations related to the San Jose Reservoir in Yanacocha.

 

The following is a reconciliation of reclamation and remediation liabilities:

 

 Balance January 1, 2009 $757  
 Additions, changes in estimates and other    105  
 Liabilities settled    (49)  
 Accretion expense    46  
 Balance December 31, 2009  859  
 Additions, changes in estimates and other    188  
 Liabilities settled    (51)  
 Accretion expense    52  
 Balance December 31, 2010 $1,048  

The current portion of Reclamation and remediation liabilities of $64 and $54 at December 31, 2010 and 2009, respectively, are included in Other current liabilities (see Note 24).

 

The Company's reclamation and remediation expenses consisted of:

 

   Years Ended December 31, 
   2010 2009 2008 
 Reclamation $13 $13 $101 
 Accretion - operating    44  34  31 
 Accretion - non-operating  8  12  10 
   $65 $59 $142 

Additions to the reclamation liability in 2010 of $188 include $186 for currently or recently producing properties due mainly to increased water treatment costs as a result of mine plan changes for Yanacocha, increased demolition costs for Boddington, an increase in the tailings area at Kalgoorlie, increased backfill at Phoenix, increased activity at Hope Bay and $2 for historic mining operations primarily related to additional water management costs.

 

Additions to the reclamation liability in 2009 of $105 include $90 for currently or recently producing properties due mainly to increased disturbance area at Batu Hijau, post-mine backfilling of underground operations and an increase in the tailings area at Kalgoorlie, increased backfill at Phoenix and the acquisition of the remaining one-third of Boddington. Additions to the reclamation liability in 2009 also include $15 for historic mining operations for additional water management costs, property acquisitions and other related activities.

 

Advanced Projects, Research and Development
ADVANCED PROJECTS, RESEARCH AND DEVELOPMENT
   Years Ended December 31, 
   2010 2009 2008 
Major projects:          
 Hope Bay $74 $25 $39 
 Subika underground  11  2  - 
 Conga  8  4  4 
 Akyem  5  8  7 
 Boddington  -  25  3 
Other projects:          
 Technical and project services  49  24  23 
 Corporate  29  14  15 
 Other  40  33  75 
   $216 $135 $166 
            

NOTE 5 ADVANCED PROJECTS, RESEARCH AND DEVELOPMENT

 

Other Expense, Net
OTHER EXPENSE, NET
NOTE 6    OTHER EXPENSE, NET 
            
   Years Ended December 31, 
   2010 2009 2008 
Community development   $111 $84 $87 
Regional administration    64  55  48 
Western Australia power plant    15  37  18 
World Gold Council dues    13  11  10 
Batu Hijau divestiture    4  12  15 
Revaluation of contingent consideration  2  23  - 
Boddington acquisition costs  -  67  - 
Other    52  69  62 
   $261 $358 $240 
Other Income, Net
OTHER INCOME, NET
NOTE 7    OTHER INCOME, NET
            
   Years Ended December 31, 
   2010 2009 2008 
Canadian Oil Sands Trust distributions   $55 $26 $110 
Gain on asset sales, net    48  16  42 
Income from developing projects, net  18  4  12 
Gain on sale of investments, net  16  8  30 
European Gold Refinery income  14  14  4 
Interest income    11  16  29 
Impairment of marketable securities  (1)  (6)  (114) 
Foreign currency exchange losses, net    (64)  (1)  (12) 
Other    12  11  22 
   $109 $88 $123 
            
            
Stock Based Compensation
STOCK BASED COMPENSATION

NOTE 9    STOCK BASED COMPENSATION

 

The Company has stock incentive plans for executives and eligible employees. Stock incentive awards include options to purchase shares of stock with exercise prices not less than fair market value of the underlying stock at the date of grant, restricted stock units and performance leveraged stock units. At December 31, 2010, 10,516,994 shares were available for future stock incentive plan awards.

 

Employee Stock Options

 

Stock options granted under the Company's stock incentive plans vest over periods of three years or more and are exercisable over a period of time not to exceed 10 years from the grant date. The value of each option award is estimated at the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of subjective assumptions, including the expected term of the option award and stock price volatility. The expected term of options granted is derived from historical data on employee exercise and post-vesting employment termination experience. Expected volatility is based on the historical volatility of our stock at the grant date. These estimates involve inherent uncertainties and the application of management's judgment. In addition, we are required to estimate the expected forfeiture rate and only recognize expense for those options expected to vest. As a result, if other assumptions had been used, our recorded stock based compensation expense would have been different from that reported. The Black-Scholes option pricing model used the following assumptions:

 

   2010 2009 2008 2007 2006
Weighted-average risk-free interest rate   2.5% 2.0% 3.1% 4.6% 4.9%
Dividend yield   0.7% 1.0% 1.0% 1.0% 0.7%
Expected life in years   5  5  5  5  5 
Volatility   38% 36% 30% 32% 34%

 The following table summarizes annual activity for all stock options for each of the three years ended December 31:
                    
   2010 2009 2008
   Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price
Outstanding at beginning of year   6,142,073 $42.65 6,463,004 $42.17 6,234,814 $41.09
Granted   918,343 $55.68 1,157,825 $39.99 1,416,963 $40.77
Exercised   (1,494,686) $40.38 (1,204,836) $36.24 (931,741) $30.88
Forfeited and expired   (151,525) $51.02 (273,920) $50.20 (257,032) $49.17
Outstanding at end of year   5,414,205 $45.36 6,142,073 $42.65 6,463,004 $42.17
                    
Options exercisable at year-end   3,211,115 $45.50 3,880,866 $44.39 4,464,475 $42.01
                    
Weighted-average fair value of                  
 options granted during the year $20.01    $12.88    $11.96   

 The following table summarizes information about stock options outstanding and exercisable at December 31, 2010:
              
   Options Outstanding Options Exercisable
Range of Exercise Prices Number Outstanding  Weighted-Average Remaining Contractual Life (in years) Weighted-Average Exercise Price Number Exercisable Weighted-Average Exercise Price
$20 to $30   480,573 5.6 $26.74 180,573 $26.47
$30 to $40   1,197,686 7.6 $39.60 480,164 $39.08
$40 to $50   2,175,950 5.5 $44.62 1,884,578 $44.65
$50+   1,559,996 7.6 $56.54 665,800 $57.71
   5,414,205 6.6 $45.36 3,211,115 $45.50

At December 31, 2010 there was $21 of unrecognized compensation cost related to 2,203,090 unvested stock options. This cost is expected to be recognized over a weighted-average period of approximately 2 years. The total intrinsic value of options exercised in 2010, 2009 and 2008 was $29, $16 and $15, respectively. At December 31, 2010, the aggregate intrinsic value of outstanding stock options was $87 and the aggregate intrinsic value of exercisable options was $51 at December 31, 2010.

 

The following stock options vested in each of the three years ended December 31:

 

  2010 2009 2008 
Stock options vested    922,463  795,566  835,982 
Weighted-average exercise price   $42.16 $46.86 $47.21 

Other Stock Based Compensation

 

The Company grants restricted stock units to executives and eligible employees upon achievement of certain financial and operating results. Restricted stock units vest over periods of three years or more. Prior to vesting, holders of restricted stock units do not have the right to vote the underlying shares; however, executives accrue dividend equivalents on their restricted stock units, which are paid at the time the restricted stock units vest. The restricted stock units are subject to forfeiture risk and other restrictions. Upon vesting, the employee is entitled to receive one share of the Company's common stock for each restricted stock unit. In 2010, 2009 and 2008 the Company granted 483,408, 450,195 and 16,360 restricted stock units, respectively, at a weighted-average fair market value of $52, $42 and $39, respectively, per underlying share of the Company's common stock. At December 31, 2010, 454,256, 255,230 and 3,765 shares remain unvested for the 2010, 2009 and 2008 grants, respectively.

 

The Company grants financial performance stock bonuses to eligible executives upon achievement of certain financial and operating results, based on a targeted number of shares at the beginning of each performance period. At the end of the performance period, one third of the bonus is paid in common stock and two-thirds of the bonus is paid in restricted stock units that vest in equal annual increments at the second and third anniversaries of the start of the performance period. In 2010 and 2009, the Company granted 64,646 and 40,078 common shares, respectively, and 129,302 and 80,172 restricted stock units, respectively, included in the restricted stock unit grants above at a fair market value of $50 and $43 per underlying share of the Company's common stock, respectively, under the financial performance stock bonus plan.

 

Beginning in 2010, the Company grants performance leveraged stock units (“PSUs”) to eligible executives. In 2010, the Company granted 204,732 PSUs at a weighted-average fair market value of $69. The actual number of PSUs earned will be determined at the end of a three year performance period (except two partial awards that will be based on a one and two year performance period, respectively), based upon certain measures of shareholder return.

 

Prior to 2009, the Company granted restricted stock awards to executives and deferred stock awards to eligible employees upon achievement of certain financial and operating results. Shares of restricted stock and deferred stock vest over periods of three years or more from the grant date and are subject to certain restrictions related to ownership and transferability prior to vesting. The Company no longer grants restricted stock or deferred stock. In 2008, 218,697 shares of restricted stock, were granted at a weighted-average fair market value of $39 per underlying share of the Company's common stock. At December 31, 2010, 126,391 shares remained unvested for the 2008 restricted stock awards. In 2008, the Company granted 394,095 shares of deferred stock, at a weighted-average fair market value of $44 per underlying share of the Company's common stock. At December 31, 2010, 106,168 shares remained unvested for the 2008 deferred stock awards.

 

The total intrinsic value of other stock based compensation awards that vested in 2010, 2009 and 2008 was $28, $19 and $14, respectively. At December 31, 2010, there was $25 of unrecognized compensation costs related to the unvested other stock based compensation awards. This cost is expected to be recognized over a weighted-average period of approximately 2 years.

 

The Company recognized stock based compensation as follows:

 

  Years Ended December 31, 
  2010 2009 2008 
Stock options   $16 $14 $16 
Restricted stock units    16  6  - 
Performance leveraged stock units  7  -  - 
Common stock    3  3  - 
Restricted stock    2  4  6 
Deferred stock    8  13  12 
  $52 $40 $34 
Income and Mining Taxes
INCOME TAXES

NOTE 10    INCOME AND MINING TAXES

 

The Company's Income and mining tax expense consisted of:

 

   Years Ended December 31, 
   2010 2009 2008 
Current:          
 United States   $(214) $(46) $(104) 
 Foreign    (1,022)  (782)  (353) 
    (1,236)  (828)  (457) 
Deferred:          
 United States    518  42  246 
 Foreign    (138)  (43)  69 
    380  (1)  315 
   $(856) $(829) $(142) 

The Company's Income before income and mining tax and other items consisted of:

 

  Years Ended December 31, 
  2010 2009 2008 
United States   $737 $291 $563 
Foreign    3,260  2,663  731 
  $3,997 $2,954 $1,294 

The Company's income and mining tax expense differed from the amounts computed by applying the United States statutory corporate income tax rate for the following reasons:

 

 

    Years Ended December 31,  
    2010 2009 2008  
Income before income and mining tax and other items   $3,997 $2,954 $1,294  
United States statutory corporate income tax rate    35% 35% 35% 
Income tax expense computed at United States statutory corporate income tax rate             
 statutory corporate income tax rate    (1,399)  (1,034)  (453)  
Reconciling items:           
 Tax benefit generated on change in form of a non-  440  -  159  
  U.S. subsidiary            
 Percentage depletion    151  127  130  
 Resolution of prior years’ uncertain income tax matters  11  38  69  
 Change in valuation allowance on deferred tax assets  18  32  (31)  
 Mining taxes (net of federal benefit)  (33)  (27)  (27)  
 Other    (44)  35  11  
Income and mining tax expense   $(856) $(829) $(142)  

  Components of the Company's deferred income tax assets (liabilities) are as follows:
          
    At December 31, 
    2010 2009 
Deferred income tax assets:       
 Exploration costs   $75 $72 
 Depreciation    6  21 
 Net operating losses and tax credits    799  980 
 Retiree benefit and vacation accrual costs    98  124 
 Remediation and reclamation costs    158  132 
 Investment in partnerships    563  57 
 Other    103  64 
     1,802  1,450 
 Valuation allowances    (435)  (437) 
     1,367  1,013 
          
Deferred income tax liabilities:        
 Net undistributed earnings of subsidiaries    (237)  (218) 
 Unrealized gain on investments    (176)  (137) 
 Depletable and amortizable costs associated with mineral rights    (857)  (826) 
 Derivative instruments    (25)  (37) 
 Other  -  (1) 
     (1,295)  (1,219) 
Net deferred income tax assets (liabilities)   $72 $(206) 

 Net deferred income tax assets and liabilities consist of:
         
   At December 31, 
   2010 2009 
Current deferred income tax assets   $177 $215 
Long-term deferred income tax assets    1,437  937 
Current deferred income tax liabilities   (54)  (17) 
Long-term deferred income tax liabilities    (1,488)  (1,341) 
   $72 $(206) 

Factors that Significantly Impact Effective Tax Rate

In 2010, the Company converted certain non-U.S. entities to U.S. entities for U.S. income tax purposes. The lower effective tax rate in 2010 and 2008 is primarily due to tax benefits recognized as a result of “check the box” elections made with respect to certain of the Company's non-US subsidiaries. As a result of the elections, the subsidiaries are treated as flow-through entities for U.S. federal income tax purposes. The restructurings in 2010 resulted in the recording of a deferred tax asset, calculated as the difference between fair market valuations of the subsidiaries compared to the underlying financial statement basis in the assets. The restructuring in 2008 resulted in a significant loss that allowed the Company to recover income taxes paid in prior years.

Percentage depletion allowances (tax deductions for depletion that may exceed the tax basis in mineral reserves) are available under the income tax laws of the United States for operations conducted in the United States or through branches and partnerships owned by U.S. subsidiaries included in the Company's consolidated United States income tax return. The deductions are highly sensitive to the price of gold and other minerals produced by the Company.

 

Tax expense decreased due to the reduction in income taxes from revised estimates of reserves for uncertain income tax positions recorded in jurisdictions where either the statutes of limitations expired or where uncertain income tax positions were settled.

 

The reduction in valuation allowances in 2010 and 2009 are a result of the increase in value of certain marketable securities, and higher forecasted taxable income from certain mining operations caused by the increase in the average price of gold and the realization of capital loss benefits. In addition, $44 of the valuation allowance, when recognized, will not reduce the Company's effective tax rate, but will be recorded directly to equity. The valuation allowance remaining at the end of 2010 primarily is attributable to non-U.S. subsidiaries tax loss carryforwards.

 

In the fourth quarter of 2010, the Company reclassified certain income based state and provincial taxes from Costs applicable to sales to Income and mining tax expense. Tax expense increased due to the inclusion of such taxes as Income and mining tax expense. The reclassification resulted in $33, $27 and $27 (net of federal benefit) increases to income and mining taxes for 2010, 2009 and 2008, respectively.

 

Other

 

Newmont intends to indefinitely reinvest earnings from certain foreign operations. Accordingly, U.S. and non-U.S. income and withholding taxes for which deferred taxes might otherwise be required, have not been provided on a cumulative amount of temporary differences (including, for this purpose, any difference between the tax basis in the stock of a consolidated subsidiary and the amount of the subsidiary's net equity determined for financial reporting purposes) related to investments in foreign subsidiaries of approximately $7 and $117 at December 31, 2010 and 2009, respectively. The decrease shown above is due to the change in the Company's assertion regarding unremitted earnings that resulted from the conversion of non-U.S. entities to U.S. entities in 2010. As such, deferred taxes are now being provided for the foreign operations included in the restructuring.

 

Company's Unrecognized Tax Benefits

 

At December 31, 2010, 2009 and 2008, the Company had $116, $130 and $181 of total gross unrecognized tax benefits, respectively. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:

   2010 2009 2008 
Total amount of gross unrecognized tax benefits at          
 beginning of year $130 $181 $230 
Additions for tax positions of prior years    3  (21)  29 
Additions for tax positions of current year    -  3  50 
Reductions due to settlements with taxing authorities    (9)  (27)  (57) 
Reductions due to lapse of statute of limitations    (8)  (6)  (71) 
Total amount of gross unrecognized tax benefits at end of          
 year $116 $130 $181 

At December 31, 2010, 2009 and 2008, $45, $63 and $116, respectively, represents the amount of unrecognized tax benefits that, if recognized, would impact the Company's effective income tax rate.

 

The Company operates in numerous countries around the world and accordingly it is subject to, and pays annual income taxes under, the various income tax regimes in the countries in which it operates. Some of these tax regimes are defined by contractual agreements with the local government, and others are defined by the general corporate income tax laws of the country. The Company has historically filed, and continues to file, all required income tax returns and paid the taxes reasonably determined to be due. The tax rules and regulations in many countries are highly complex and subject to interpretation. From time to time, the Company is subject to a review of its historic income tax filings and in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain rules to the Company's business conducted within the country involved.

 

On June 25, 2008, the United States Tax Court issued an opinion for Santa Fe Pacific Gold Company and Subsidiaries ("Santa Fe"), by and through its successor in interest, Newmont USA Limited, a member of the Newmont Mining Corporation affiliated group. The Tax Court issued the ruling for the tax years 1994 through 1997, which were years prior to Newmont's acquisition of Santa Fe. The Tax Court ruled unfavorably on certain issues relating to the method in which Santa Fe was calculating adjustments related to percentage depletion in its Alternative Minimum Tax calculation. On April 27, 2009, the United States Tax Court issued a decision in favor of Santa Fe, with respect to the $65 million Homestake break-up fee deducted by Santa Fe in tax year 1997. Following procedural rules, the Internal Revenue Service was given 90 days from the date the decision was entered in which to file an appeal. The entry of decision was made on July 16, 2009. The Internal Revenue Service did not file an appeal, and as a result, as of October 15, 2009 the decision stands. The result of this decision resulted in overpayments for each of the tax years 1994 through 1997. The Company has adjusted the unrecognized tax benefits accordingly.

 

In 2010, PTNNT, the Company's partially owned subsidiary in Indonesia, received a final tax assessment from the Indonesian Tax Office. Although required to pay $132 (of which, $119 related to corporate income tax matters) of tax and penalties upon receipt of the tax assessment, PTNNT intends to vigorously defend its positions through all processes available to it. PTNNT believes it is more likely than not that it will prevail based on prior experience and therefore recorded a corresponding receivable in the third quarter.

 

The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. Federal, state and local, and non-U.S. income tax examinations by tax authorities for years before 2005. As a result of (i) statute of limitations that will begin to expire within the next 12 months in various jurisdictions, and (ii) possible settlements of audit-related issues with taxing authorities in various jurisdictions with respect to which none of the issues are individually significant, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease between $1 to $3 in the next 12 months.

 

The Company's continuing practice is to recognize interest and/or penalties related to unrecognized tax benefits as part of its income and mining tax expense. At December 31, 2010 and 2009, the total amount of accrued income-tax-related interest and penalties included in the Consolidated Balance Sheets was $10 and $13, respectively. During 2010, the Company released through the Statements of Consolidated Income $4 of interest and penalties. During 2009 and 2008, the Company accrued through the Statements of Consolidated Income an additional $9 and $31 of interest and penalties.

 

Tax Loss Carryforwards, Foreign Tax Credits, and AMT Credits

At December 31, 2010 and 2009, the Company had (i) $1,220 and $1,213 of net operating loss carry forwards, respectively; and (ii) $168 and $279 of tax credit carry forwards, respectively. At December 31, 2010 and 2009, $857 and $1,020, respectively, of net operating loss carry forwards are attributable to operations in Australia, Ghana and France for which current tax law provides no expiration period. The remaining net operating loss carryforwards expire at various dates through 2030. Valuation allowances have been recorded on net operating loss carryforwards where the Company believes based on the available evidence, it is more likely than not that the net operating losses will not be realized.

Tax credit carry forwards for 2010 and 2009 of $53 and $158 consist of foreign tax credits available in the United States; substantially all such credits not utilized will expire at the end of 2018. Other credit carry forwards at the end of 2010 and 2009 in the amounts of $115 and $121, respectively, represent alternative minimum tax credits attributable to the Company's U.S. operations for which the current tax law provides no period of expiration.

 

Differences in tax rates and other foreign income tax law variations make the ability to fully utilize all available foreign income tax credits on a year-by-year basis highly dependent on the price of the gold and copper produced by the Company and the costs of production, since lower prices or higher costs can result in having insufficient sources of taxable income in the United States to utilize all available foreign tax credits. Such credits have limited carry back and carry forward periods and can only be used to reduce the United States income tax imposed on foreign earnings included in the annual United States consolidated income tax return.

 

 

Equity Income (Loss) of Affiliates
EQUITY INCOME LOSS OF AFFILIATES
NOTE 11 EQUITY INCOME (LOSS) OF AFFILIATES
           
  Years Ended December 31, 
  2010 2009 2008 
AGR Matthey Joint Venture   $3 $5 $(2) 
Regis Resources Ltd.  -  -  (3) 
Minera La Zanja S.R.L.   10  (4)  - 
Euronimba Ltd.  (10)  (17)  - 
  $3 $(16) $(5) 

AGR Matthey Joint Venture

 

The AGR Matthey Joint Venture (“AGR”), a gold refinery, in which Newmont held a 40% interest, was dissolved on March 30, 2010. Newmont received consideration of $14 from the dissolution and recorded a gain of $6 during 2010. Newmont received dividends of $7 and $2 during 2010 and 2009, respectively, from its interests in AGR. See also Note 26 for details of Newmont's transactions with AGR.

 

Regis Resources Ltd.

 

Prior to December 2009, Newmont held a 23.15% interest in Regis Resources Ltd. (“Regis Resources”). On December 22, 2009, Regis Resources issued common shares through a rights issue. As a result, Newmont's ownership interest in Regis Resources was diluted and the Company discontinued equity accounting.

 

Minera La Zanja S.R.L.

 

Newmont holds a 46.94% interest in Minera La Zanja, S.R.L. (“La Zanja”), a gold project near the city of Cajamarca, Peru. The remaining interests are held by Compañia de Minas Buenaventura, S.A.A. (“Buenaventura”). The mine commenced operations in September 2010 and is operated by Buenaventura.

 

Euronimba Ltd.

 

Newmont holds a 43.50% interest in Euronimba Ltd. (“Euronimba”), with the remaining interests held by BHP Billiton (43.50%) and Areva (13%). Euronimba owns 95% of the Nimba iron ore project located in the Republic of Guinea which is in the early stages of development.

 

Discontinued Operations
DISCONTINUED OPERATIONS

NOTE 12    DISCONTINUED OPERATIONS

 

Discontinued operations include Kori Kollo sold in July 2009 and various other operations sold to third parties.

 

In December 2010, the Company recognized a $28 charge, net of tax benefits, for legal claims related to historic operations previously sold to third parties.

 

In July 2009, the Company sold its interest in Kori Kollo in Bolivia. As part of the transaction, a reclamation trust fund was established with the proceeds to be made available exclusively to pay for closure and reclamation costs when operations eventually cease. The Company recognized a $16 charge in 2009, net of tax benefits, related to the sale.

 

Newmont has accounted for these dispositions in accordance with accounting guidance for the impairment or disposal of long-lived assets. The Company has reclassified the income statement results from the historical presentation to Income (loss) from discontinued operations in the Statements of Consolidated Income for all periods presented. The Statements of Consolidated Cash Flows have been reclassified for discontinued operations for all periods presented.

 

The following table details selected financial information included in the Income (loss) from discontinued operations in the Statements of Consolidated Income:

 

   Years Ended December 31, 
   2010 2009 2008 
Sales $- $32 $75 
            
Income (loss) from operations:           
 Kori Kollo   $- $1 $(9) 
 Other  -  -  6 
    -  1  (3) 
            
Non-operating gain (loss)  (40)  (44)  1 
Pre-tax income (loss)    (40)  (43)  (2) 
Income tax benefit  12  27  15 
Income (loss) from discontinued operations   $(28) $(16) $13 

The following table details selected financial information included in Net cash provided from (used in) discontinued operations and investing activities and financing activities of discontinued operations:

 

   Years Ended December 31, 
   2010 2009 2008 
Net cash provided from (used in) discontinued operations:          
 Income (loss) from discontinued operations   $(28) $(16) $13 
 Amortization    -  3  9 
 Deferred income taxes    (12)  (28)  4 
 Impairment of assets held for sale    -  44  - 
 Other operating adjustments and write-downs    -  7  19 
 Increase (decrease) in net operating liabilities    27  23  (149) 
   $(13) $33 $(104) 
            
Net cash used in investing activities of discontinued operations:          
 Proceeds from asset sales, net   $- $- $(6) 
 Additions to property, plant and mine development    -  -  (5) 
   $- $- $(11) 
            
Net cash used in financing activities of discontinued operations:          
 Repayment of debt   $- $(2) $(4) 
   $- $(2) $(4) 
Net Income attributable to Noncontrolling Interests
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
NOTE 13    NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 
            
  Years Ended December 31, 
   2010 2009 2008 
 Batu Hijau   $549 $445 $98 
 Yanacocha    292  354  232 
 Other    (2)  (3)  (1) 
   $839 $796 $329 

In June 2010, PTPI completed the sale of an approximate 2.2% interest in PTNNT to PTIMI.  To enable the transaction to proceed, the Company released its rights to the dividends payable on this 2.2% interest and released the security interest in the associated shares. The Company further agreed, however, to advance certain funds to PTIMI to enable it to purchase the interest in exchange for an assignment by PTIMI to the Company of the dividends payable on the 2.2% interest (net of withholding tax), a pledge of the shares as security on the advance, and certain voting rights and obligations.  The funds that the Company advanced to PTIMI and which it paid to PTPI for the shares were used by PTPI to reduce its outstanding balance with the Company.  Upon completion of this transaction, PTPI requested and was allowed to borrow additional funds under the Company's agreement with PTPI.  The Company's economic interest in PTPI's and PTIMI's combined 20% interest in PTNNT remains at 17% and has not changed as a result of these transactions.

In March 2010, the Company (through NTP) completed the sale and transfer of shares for a 7% interest in PTNNT, the Indonesian subsidiary that operates Batu Hijau, to PT Multi Daerah Bersaing (“PTMDB”) in compliance with divestiture obligations under the Contract of Work, reducing NTP's ownership interest to 56% from 63%. In 2009, the Company (through NTP) completed the sale and transfer of shares for a 17% interest in PTNNT to PTMDB in compliance with divestiture obligations under the Contract of Work, reducing NTP's ownership interest to 63% from 80%. The 2010 and 2009 share transfers resulted in gains of approximately $16 (after tax of $33) and $63 (after tax of $115), respectively, that were recorded as Additional paid-in capital. For information on the Batu Hijau Contract of Work and divestiture requirements, see the discussion in Note 31 to the Consolidated Financial Statements.

 

In December 2009, the Company entered into a transaction with PTPI, whereby the Company agreed to advance certain funds to PTPI in exchange for a pledge of the noncontrolling partner's 20% share of PTNNT dividends, net of withholding tax, and certain voting rights and obligations, and a commitment from PTPI to support the application of Newmont's standards to the operation of the Batu Hijau mine. Based on the transaction with PTPI, the Company recognized an additional 17% effective economic interest in PTNNT.

 

At December 31, 2010, Newmont had a 48.50% effective economic interest in PTNNT. Based on ASC guidance for variable interest entities, Newmont continues to consolidate PTNNT in its Consolidated Financial Statements.

 

Newmont has a 51.35% ownership interest in Yanacocha, with the remaining interests held by Compañia de Minas Buenaventura, S.A.A. (43.65%) and the International Finance Corporation (5%).

 

Newmont Equity and Income Per Share
NEWMONT EQUITY AND INCOME PER SHARE

NOTE 14    NEWMONT EQUITY AND INCOME PER SHARE

 

Newmont Common Stock

 

In October 2007, Newmont filed a shelf registration statement on Form S-3 under which it can issue an indeterminate number or amount of common stock, preferred stock, debt securities, guarantees of debt securities and warrants from time to time at indeterminate prices. It also included the resale of an indeterminate amount of common stock, preferred stock and debt securities from time to time upon exercise of warrants or conversion of convertible securities.

 

Treasury Stock

 

Treasury stock is acquired by the Company when certain restricted stock awards vest or are forfeited (see Note 9). At vesting, a participant has a tax liability and, pursuant to the participant's award agreement, may elect withholding of restricted stock to satisfy tax withholding obligations. The withheld or forfeited stock is accounted for as treasury stock and carried at the par value of the related common stock.

 

Exchangeable Shares

 

In connection with the acquisition of Franco-Nevada Corporation (“Franco”) in February 2002, certain holders of Franco common stock received 0.8 of an exchangeable share of Newmont Mining Corporation of Canada Limited (formerly Franco) for each share of common stock held. These exchangeable shares are convertible, at the option of the holder, into shares of Newmont common stock on a one-for-one basis, and entitle holders to dividends and other rights economically equivalent to holders of Newmont common stock. At December 31, 2010 and 2009, the value of these no-par shares was included in Additional paid-in capital and outstanding shares.

 

Net Income per Common Share

 

Basic income per common share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted income per common share is computed similarly to basic income per common share except that the weighted average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued.

 

    Years Ended December 31, 
    2010 2009 2008 
Net income attributable to Newmont stockholders:           
 Continuing operations   $2,305 $1,308 $816 
 Discontinued operations    (28)  (11)  15 
    $2,277 $1,297 $831 
             
Weighted average common shares (millions):          
 Basic    492  487  454 
 Effect of employee stock based awards    2  -  1 
 Effect of convertible notes  6  -  - 
 Diluted    500  487  455 
             
Net income attributable to Newmont stockholders per          
 common share          
 Basic:          
  Continuing operations   $4.69 $2.68 $1.80 
  Discontinued operations    (0.06)  (0.02)  0.03 
    $4.63 $2.66 $1.83 
             
 Diluted:          
  Continuing operations   $4.61 $2.68 $1.80 
  Discontinued operations    (0.06)  (0.02)  0.03 
    $4.55 $2.66 $1.83 

Options to purchase 2 million, 4 million and 4 million shares of common stock at average exercise prices of $57, $47 and $48 were outstanding at December 31, 2010, 2009 and 2008, respectively, but were not included in the computation of diluted weighted average number of common shares because their effect would have been anti-dilutive.

 

In February 2009 and July 2007, Newmont issued $518 and $1,150, respectively, of convertible notes that, if converted in the future, would have a potentially dilutive effect on the Company's stock. The notes issued in 2009 and 2007 are convertible, at the holder's option, equivalent to a conversion price of $46.18 per share of common stock (11,206,150 shares of common stock) and $46.13 per share of common stock (24,929,547 shares of common stock), respectively. Under the indentures for the convertible notes, upon conversion Newmont is required to settle the principal amount of the convertible notes in cash and may elect to settle the remaining conversion obligation (stock price in excess of the conversion price) in cash, shares or a combination thereof. The effect of contingently convertible instruments on diluted earnings per share is calculated under the net share settlement method in accordance with ASC guidance. The average price of the Company's common stock for the year ended December 31, 2010 exceeded the conversion price of $46.18 and $46.13 for the notes issued in 2009 and 2007, respectively, and therefore, 6 million additional shares were included in the computation of diluted weighted average common shares for the year ended December 31, 2010.

 

In connection with the 2007 convertible senior notes offering, the Company entered into convertible note hedge transactions and warrant transactions (“Call Spread Transactions”). These transactions included the purchase of call options and the sale of warrants. As a result of the Call Spread Transactions, the conversion price of $46.13 was effectively increased to $60.17. Should the warrant transactions become dilutive to the Company's earnings per share (i.e. Newmont's share price exceeds $60.17) the underlying shares will be included in the computation of diluted income per common share.

 

The Net income attributable to Newmont stockholders and transfers from noncontrolling interests was:

 

    Years Ended December 31,
    2010 2009 2008
Net income attributable to Newmont stockholders   $2,277 $1,297 $831
Transfers from the noncontrolling interests:         
 Increase in Additional paid-in capital from sale of PTNNT shares,         
  net of tax of $33 and $115, respectively  16  63  -
 Net income attributable to Newmont stockholders and transfers         
  from noncontrolling interests $2,293 $1,360 $831
Acquisitions
ACQUISITIONS

NOTE 15    ACQUISITIONS

 

On June 25, 2009 the Company completed the acquisition of the remaining 33.33% interest in Boddington from AngloGold Ashanti Australia Limited (“AngloGold”). Consideration for the acquisition consisted of $982 and a contingent royalty capped at $100, equal to 50% of the average realized operating margin (Revenue less Costs applicable to sales on a by-product basis), if any, exceeding $600 per ounce, payable quarterly beginning in the second quarter of 2010 on one-third of gold sales from Boddington. At the acquisition date, the Company estimated the fair value of the contingent consideration at $62. In connection with the acquisition, the Company incurred $67 of transaction costs in 2009 of which $15 of these costs were paid at December 31, 2010.

 

At December 31, 2010 and December 31, 2009, the fair value of the contingent consideration was valued to approximately $83 and $85, respectively. Changes to the estimated fair value resulting from periodic revaluations are recorded to Other expense, net. During 2010, the Company paid $4 in cash to AngloGold related to the contingent consideration. The range of remaining undiscounted amounts the Company could pay is between $0 and $96.

 

The Boddington purchase price allocation based on the estimated fair values of assets acquired and liabilities assumed was as follows:

 Assets:     
 Cash   $1 
 Property, plant and mine development, net    1,073 
 Inventories and stockpiles    7 
 Other assets    11 
   $1,092 
 Liabilities:     
 Accrued liabilities   $33 
 Reclamation liabilities    15 
    48 
 Net assets acquired    $1,044 

During 2008, the Company paid $318 million to complete the 2007 acquisition of Miramar Mining Corporation and the Hope Bay project.

 

Fair Value Accounting
FAIR VALUE ACCOUNTING

NOTE 16    FAIR VALUE ACCOUNTING

 

Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

 

Level 1       Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

 

Level 2       Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

 

Level 3       Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

 

The following table sets forth the Company's assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

 

    Fair Value at December 31, 2010 
    Total Level 1 Level 2 Level 3 
 Assets:            
  Cash equivalents  $2,316 $2,316 $- $- 
  Marketable equity securities:              
   Extractive industries 1,573  1,573  -  - 
   Other 6  6  -  - 
  Marketable debt securities:            
   Asset backed commercial paper   19  -  -  19 
   Corporate 10  10  -  - 
   Auction rate securities   5  -  -  5 
  Trade receivable from provisional copper  412  412  -  - 
   and gold concentrate sales, net             
  Derivative instruments, net:              
   Foreign exchange forward contracts 301  -  301  - 
   Diesel forward contracts 8  -  8  - 
   Interest rate swap contracts 3  -  3  - 
    $4,653 $4,317 $312 $24 
 Liabilities:            
  8 5/8% debentures ($222 hedged portion)  $228 $- $228 $- 
  Boddington contingent consideration 83  -  -  83 
    $311 $- $228 $83 

The Company's cash equivalent instruments are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The cash equivalent instruments that are valued based on quoted market prices in active markets are primarily money market securities and U.S. Treasury securities.

 

The Company's marketable equity securities are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy. The securities are segregated based on industry. The fair value of the marketable equity securities is calculated as the quoted market price of the marketable equity security multiplied by the quantity of shares held by the Company.

 

The Company's marketable debt securities include investments in auction rate securities and asset backed commercial paper. The Company reviews the fair value for auction rate securities and asset backed commercial paper on at least a quarterly basis. The auction rate securities are traded in markets that are not active, trade infrequently and have little price transparency. The Company estimated the fair value of the auction rate securities based on weighted average risk calculations using probabilistic cash flow assumptions. In January 2009, the investments in the Company's asset backed commercial paper were restructured by court order. The restructuring allowed an interest distribution to be made to investors. The Company estimated the fair value of the asset backed commercial paper using a probability of return to each class of notes reflective of information reviewed regarding the separate classes of securities. The auction rate securities and asset backed commercial paper are classified within Level 3 of the fair value hierarchy. The Company's corporate marketable debt securities are valued using quoted market prices in active markets and as such are classified within Level 1 of the fair value hierarchy.

 

The Company's net trade receivable from provisional copper and gold concentrate sales, subject to final pricing, is valued using quoted market prices based on forward curves and, as such, is classified within Level 1 of the fair value hierarchy.

 

The Company's derivative instruments are valued using pricing models and the Company generally uses similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices, yield curves, credit spreads, measures of volatility, and correlations of such inputs. The Company's derivatives trade in liquid markets, and as such, model inputs can generally be verified and do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy.

 

The Company has fixed to floating swap contracts to hedge a portion of the interest rate risk exposure of its 8 5/8% debentures due May 2011. The hedged portion of the Company's 8 5/8% debentures are valued using pricing models which require inputs, including risk-free interest rates and credit spreads. Because the inputs are derived from observable market data, the hedged portion of the 8 5/8% debentures is classified within Level 2 of the fair value hierarchy.

The Company recorded a contingent consideration liability related to the 2009 acquisition of the final 33.33% interest in Boddington. The value of the contingent consideration was determined using a valuation model which simulates future gold and copper prices and costs applicable to sales to estimate fair value. The contingent consideration liability is classified within Level 3 of the fair value hierarchy. See Note 15.

The table below sets forth a summary of changes in the fair value of the Company's Level 3 financial assets and liabilities for the years ended December 31, 2010:

 

    Auction Rate Securities Asset Backed Commercial Paper Total Assets Boddington Contingent Consideration Total Liabilities 
 Balance at beginning of period   $5 $18 $23 $85 $85 
  Unrealized gain  -  1  1  -  - 
  Revaluation  -  -  -  2  2 
  Settlements  -  -  -  (4)  (4) 
 Balance at end of period   $5 $19 $24 $83 $83 

The revaluation on the Boddington contingent consideration liability of $2 was recorded in Other expense, net.

 

Unrealized gains of $1 for 2010 were included in Accumulated other comprehensive income as a result of changes in C$ exchange rates from December 31, 2009. At December 31, 2010, the assets and liabilities classified within Level 3 of the fair value hierarchy represent 1% and 27% of the total assets and liabilities measured at fair value.

 

Derivative Instruments
DERIVATIVE INSTRUMENTS

NOTE 17    DERIVATIVE INSTRUMENTS

The Company's strategy is to provide shareholders with leverage to changes in gold and copper prices by selling its production at spot market prices. Consequently, the Company does not hedge its gold and copper sales. Newmont continues to manage certain risks associated with commodity input costs, interest rates and foreign currencies using the derivative market. All of the cash flow and fair value derivative instruments described below were transacted for risk management purposes and qualify as hedging instruments. The maximum period over which hedged transactions are expected to occur is five years.

Cash Flow Hedges

The foreign currency and diesel contracts are designated as cash flow hedges, and as such, the effective portion of unrealized changes in market value have been recorded in Accumulated other comprehensive income and are reclassified to income during the period in which the hedged transaction affects earnings. Gains and losses from hedge ineffectiveness are recognized in current earnings.

Foreign Currency Contracts

 

Newmont utilizes foreign currency contracts to reduce the variability of the US dollar amount of forecasted foreign currency expenditures caused by changes in exchange rates. Newmont hedges a portion of the Company's A$ and NZ$ denominated operating expenditures which results in a blended rate realized each period. The hedging instruments are fixed forward contracts with expiration dates ranging up to five years from the date of issue. The principal hedging objective is reduction in the volatility of realized period-on-period $/A$ and $/NZ$ rates, respectively.

 

Newmont had the following foreign currency derivative contracts outstanding at December 31, 2010:

    Expected Maturity Date 
              Total/ 
    2011 2012 2013 2014 2015 Average 
 A$ Fixed Forward Contracts:                    
  A$ notional (millions)    1,026  631  314  221  99  2,291 
  Average rate ($/A$)    0.82  0.84  0.84  0.83  0.80  0.83 
  Expected hedge ratio  72% 45% 22% 17% 8% 34%
 NZ$ Fixed Forward Contracts:                    
  NZ$ notional (millions)    67  23  -  -  -  90 
  Average rate ($/NZ$)    0.69  0.69  -  -  -  0.69 
  Expected hedge ratio  57% 22% -% -% -%  40%

Diesel Fixed Forward Contracts

Newmont hedges a portion of its operating cost exposure related to diesel consumed at its Nevada operations to reduce the variability in realized diesel prices. The hedging instruments consist of a series of financially settled fixed forward contracts with expiration dates ranging up to two years from the date of issue.

Newmont had the following diesel derivative contracts outstanding at December 31, 2010:

 

    Expected Maturity Date 
        Total/ 
    2011 2012 Average 
 Diesel Fixed Forward Contracts:           
  Diesel gallons (millions)    21  7  28 
  Average rate ($/gallon)    2.28  2.44  2.32 
  Expected Nevada hedge ratio  50% 18% 34%

Treasury Rate Lock Contracts

In connection with the 2019 and 2039 notes issued in September 2009, Newmont acquired treasury rate lock contracts to reduce the variability of the proceeds realized from the bond issuances. The treasury rate locks resulted in $6 and $5 unrealized gains for the 2019 and 2039 notes, respectively. The Company previously acquired treasury rate locks in connection with the issuance of the 2035 notes that resulted in a $10 unrealized loss. The gains/losses from these contracts are recognized in Interest expense, net over the terms of the respective notes.

 

Fair Value Hedges

Interest Rate Swap Contracts

At December 31, 2010, Newmont had $222 fixed to floating swap contracts designated as a hedge against its 8 5/8% debentures due 2011. The interest rate swap contracts assist in managing the Company's mix of fixed and floating rate debt. Under the hedge contract terms, Newmont receives fixed-rate interest payments at 8.63% and pays floating-rate interest amounts based on periodic London Interbank Offered Rate (“LIBOR”) settings plus a spread, ranging from 2.60% to 7.63%. The interest rate swap contracts were designated as fair value hedges and changes in fair value have been recorded in income in each period, consistent with recording changes to the mark-to-market value of the underlying hedged liability in income.

Derivative Instrument Fair Values

Newmont had the following derivative instruments designated as hedges at December 31, 2010 and December 31, 2009:

 

   Fair Values of Derivative Instruments 
   At December 31, 2010 
   Other Current Assets Other Long-Term Assets Other Current Liabilities Other Long-Term Liabilities 
 Foreign currency exchange contracts:            
  A$ fixed forward contracts  $181 $114 $- $- 
  NZ$ fixed forward contracts   5  1  -  - 
 Diesel fixed forward contracts 7  1  -  - 
 Interest rate swap contracts   3  -  -  - 
 Total derivative instruments (Note 21)$196 $116 $- $- 
               
   Fair Values of Derivative Instruments 
   At December 31, 2009 
   Other Current Assets Other Long-Term Assets Other Current Liabilities Other Long-Term Liabilities 
 Foreign currency exchange contracts:            
  A$ fixed forward contracts  $78 $53 $- $1 
  NZ$ fixed forward contracts   5  1  -  - 
  IDR fixed forward contracts   1  -  -  - 
 Diesel fixed forward contracts   5  1  -  - 
 Interest rate swap contracts   3  4  -  - 
 Total derivative instruments (Note 21)$92 $59 $- $1 

The following tables show the location and amount of gains (losses) reported in the Company's Consolidated Financial Statements related to the Company's cash flow and fair value hedges and the gains (losses) recorded for the hedged item related to the fair value hedges.

  Foreign Currency Exchange Contracts Diesel Forward Contracts          
For the years ended December 31,2010 2009 2008 2010 2009 2008          
                             
Cash flow hedging relationships:                           
 Gain (loss) recognized in other comprehensive income (effective portion)  $287 $245 $(166) $6 $7 $(18)          
 (1)? $92 $(6) $(17) $4 $(11) $(4)          
                             
                             
  Treasury Rate Lock Contracts                   
  2010 2009 2008                   
                             
Cash flow hedging relationships:                           
 Gain (loss) recognized in other comprehensive income (effective portion)  (2)? $- $11 $-                   

(1) The gain (loss) for the effective portion of foreign currency exchange and diesel cash flow hedges reclassified from Accumulated other comprehensive income is included in Costs applicable to sales.

(2) The gain for the effective portion of treasury rate lock cash flow hedges reclassified from Accumulated other comprehensive income is recorded in Interest expense, net.

 

The amount to be reclassified from Accumulated other comprehensive income, net of tax to income during the next 12 months is a gain of approximately $135.

 

  Interest Rate Swap Contracts 8 5/8% Debentures (Hedged Portion)
For the years ended December 31,2010 2009 2008 2010 2009 2008
                   
Fair value hedging relationships:                 
 Gain (loss) recognized in income (effective portion) (1)?$6 $4 $2 $- $(1) $(2)
 Gain (loss) recognized in income (ineffective portion) (2)?$(4) $(3) $4 $2 $(3) $6

(1) The gain (loss) recognized for the effective portion of fair value hedges and the underlying hedged debt is included in Interest expense, net.

(2) The ineffective portion recognized for fair value hedges and the underlying hedged debt is included in Other income, net.

 

Provisional Copper and Gold Sales

 

The Company's provisional copper and gold sales contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the gold and copper concentrates at the prevailing indices' prices at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement.

 

The average LME copper price was $3.43 per pound during 2010, compared with the Company's recorded average provisional price of $3.42 before mark-to-market gains and treatment and refining charges. During 2010, increasing copper prices resulted in a provisional pricing mark-to-market gain of $120 ($0.22 per pound). At December 31, 2010, Newmont had copper sales of 111 million pounds priced at an average of $4.40 per pound, subject to final pricing over the next several months.

 

The average London P.M. fix for gold was $1,225 per ounce during 2010, compared with the Company's recorded average provisional price of $1,224 per ounce before mark-to-market gains and treatment and refining charges. During 2010, increasing gold prices resulted in a provisional pricing mark-to-market gain of $41 ($7 per ounce). At December 31, 2010, Newmont had gold sales of 105,000 ounces priced at an average of $1,411 per ounce, subject to final pricing over the next several months.

 

 

Investments
INVESTMENTS
NOTE 18    INVESTMENTS             
     At December 31, 2010 
     Cost/Equity Unrealized Fair/Equity 
     Basis Gain Loss Basis 
 Current:              
  Marketable Equity Securities:             
   New Gold Inc.  5  54  -  59 
   Other  19  35  -  54 
     $24 $89 $- $113 
                 
 Long-term:              
  Marketable Debt Securities:             
   Asset backed commercial paper  $25 $- $(6) $19 
   Auction rate securities    7  -  (2)  5 
   Corporate    7  3  -  10 
      39  3  (8)  34 
  Marketable Equity Securities:              
   Canadian Oil Sands Trust    308  508  -  816 
   Gabriel Resources Ltd.    78  325  -  403 
   Regis Resources Ltd.  23  148  -  171 
   Other    39  37  -  76 
      448  1,018  -  1,466 
                 
  Other investments, at cost     11  -  -  11 
                 
  Investment in Affiliates:             
   La Zanja  57  -  -  57 
     $555 $1,021 $(8) $1,568 
                 

     At December 31, 2009 
     Cost/Equity Unrealized Fair/Equity 
     Basis Gain Loss Basis 
 Current:              
  Marketable Equity Securities:             
   Regis Resources Ltd. $5 $29 $- $34 
   Other  10  12  -  22 
     $15 $41 $- $56 
 Long-term:              
  Marketable Debt Securities:              
   Asset backed commercial paper  $24 $- $(6) $18 
   Auction rate securities    7  -  (2)  5 
   Corporate    8  2  -  10 
      39  2  (8)  33 
  Marketable Equity Securities:              
   Canadian Oil Sands Trust    292  584  -  876 
   Gabriel Resources Ltd.    74  136  -  210 
   Other    15  18  -  33 
      381  738  -  1,119 
                 
  Other investments, at cost     6  -  -  6 
                 
  Investment in Affiliates:              
   AGR Matthey Joint Venture    20  -  -  20 
   La Zanja  8  -  -  8 
     $454 $740 $(8) $1,186 

Included in Investments at December 31, 2010 and 2009 are $10 and $10 of long-term marketable debt securities, respectively, and $6 and $5 long-term marketable equity securities, respectively, which are legally pledged for purposes of settling asset retirement obligations related to the San Jose Reservoir in Yanacocha.

 

On December 21, 2010 Newmont exercised 6 million warrants of New Gold Inc. and received 6 million New Gold Inc. shares for consideration of $5.

 

In March 2010, Regis Resources issued A$10 interest free convertible notes to Newmont which were repayable by December 31, 2012 and 5 million options. On September 30, 2010, Newmont accepted the offer to terminate its equity participation right on all Regis Resources tenements in return for 9 million Regis Resources shares upon conversion of the interest free convertible notes. This conversion resulted in a gain of approximately $5. On October 26, 2010, Newmont exercised the options and received 5 million Regis Resources shares for consideration of $4.

 

During 2010, the Company purchased $15 and exercised warrants for $4 of other marketable equity securities. During 2009, the Company purchased $5 of Regis Resources shares.

 

AGR, in which the Company held a 40% equity interest, was dissolved on March 30, 2010. The Company received consideration of $14 from the dissolution and recorded a gain of $6 in 2010.

 

During 2010 and 2009, the Company recognized impairments for other-than-temporary declines in value of $1 and $6, respectively, for other marketable equity securities.

 

The following tables present the gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by length of time that the individual securities have been in a continuous unrealized loss position:

 

  Less than 12 Months  12 Months or Greater  Total
At December 31, 2010 Fair Value  Unrealized Losses  Fair Value  Unrealized Losses  Fair Value  Unrealized Losses
Asset backed commercial paper $- $- $19 $6 $19 $6
Auction rate securities   -  -  5  2  5  2
 $- $- $24 $8 $24 $8
                  
                  
                  
  Less than 12 Months  12 Months or Greater  Total
At December 31, 2009 Fair Value  Unrealized Losses  Fair Value  Unrealized Losses  Fair Value  Unrealized Losses
Asset backed commercial paper $- $- $18 $6 $18 $6
Auction rate securities   -  -  5  2  5  2
 $- $- $23 $8 $23 $8

The unrealized loss of $8 at December 31, 2010 and 2009 relate to the Company's investments in asset backed commercial paper and auction rate securities as listed in the tables above. While the fair values of these investments are below their respective cost, the Company views these declines as temporary. The Company intends to hold its investment in auction rate securities and asset backed commercial paper until maturity or such time that the market recovers and therefore considers these losses temporary.

 

Inventories
INVENTORIES
NOTE 19    INVENTORIES       
         
   At December 31, 
  2010 2009 
 In-process $142 $80 
 Concentrate  111  10 
 Precious metals  4  9 
 Materials, supplies and other  401  394 
   $658 $493 
Stockpiles and Ore on Leach Pads
STOCKPILES AND ORE ON LEACH PADS
NOTE 20    STOCKPILES AND ORE ON LEACH PADS      
         
   At December 31, 
   2010 2009 
 Current:      
  Stockpiles$ 389 $ 206 
  Ore on leach pads  228   197 
   $ 617 $ 403 
 Long-term:      
  Stockpiles$ 1,397 $ 1,181 
  Ore on leach pads  360   321 
   $ 1,757 $ 1,502 
Other Assets
OTHER ASSETS
NOTE 21    OTHER ASSETS      
   At December 31, 
   2010 2009 
 Other current assets:      
  Refinery metal inventory and receivable  $617 $671 
  Derivative instruments  196  92 
  Other prepaid assets 65  70 
  Other   84  67 
   $962 $900 
         
 Other long-term assets:      
  Goodwill$188 $188 
  Income tax receivable 119  - 
  Derivative instruments  116  59 
  Intangible assets 91  29 
  Debt issuance costs   39  50 
  Restricted cash   25  70 
  Other receivables 19  16 
  Other   144  70 
   $741 $482 
Property Plant and Mine Development
PROPERTY, PLANT AND MINE DEVELOPMENT
NOTE 22    PROPERTY, PLANT AND MINE DEVELOPMENT
                      
     At December 31, 2010 At December 31, 2009
  Depreciable   Accumulated Net Book   Accumulated Net Book
 Life  Cost  Amortization  Value Cost  Amortization Value
  (in years)                  
Land    $118 $- $118 $111 $- $111
Facilities and equipment   1-27  12,424  (5,460)  6,964  12,099  (4,816)  7,283
Mine development   1-27  3,217  (1,445)  1,772  2,696  (1,181)  1,515
Mineral interests   1-27  3,463  (667)  2,796  3,380  (608)  2,772
Asset retirement cost   1-27  638  (238)  400  462  (210)  252
Construction-in-progress     857  -  857  437  -  437
     $20,717 $(7,810) $12,907 $19,185 $(6,815) $12,370
Leased assets included above in facilities and equipment   2-25 $421 $(289) $132 $421 $(275) $146
                      
     At December 31, 2010 At December 31, 2009
Mineral Interests    Gross     Gross    
  Amortization Carrying Accumulated Net Book Carrying Accumulated Net Book
  Period Value Amortization Value Value Amortization Value
  (in years)                  
Production stage   1-27 $1,235 $(660) $575 $1,207 $(601) $606
Development stage     149  -  149  155  -  155
Exploration stage   1-27  2,079  (7)  2,072  2,018  (7)  2,011
     $3,463 $(667) $2,796 $3,380 $(608) $2,772

Construction-in-progress at December 31, 2010 of $857 included $266 at South America related to Conga and infrastructure at Yanacocha, including a water treatment plant, $252 at North America related to tailings dam expansion and processing facility improvements in Nevada and other infrastructure at Hope Bay and Nevada, $222 at Asia Pacific related to tailings dam expansion at Boddington and other infrastructure at Boddington, Tanami and Batu Hijau and $84 at Africa related to the Akyem project and infrastructure at Ahafo.

 

Construction-in-progress at December 31, 2009 of $437 included $168 at Africa related to the Akyem project, the development of Amoma and other infrastructure at Ahafo, $103 at Asia Pacific related to Boddington and infrastructure at Tanami, $85 at South America related to project infrastructure, a water treatment plant and a tailings pipeline and $65 at North America related to tailings dam expansion at Twin Creeks and an underground truck shop and equipment purchases at Carlin.

 

Write-down of property, plant and mine development totaled $6, $7 and $137 for 2010, 2009 and 2008, respectively. The 2010 write-down primarily related to the disposal of assets in North America and Asia Pacific. The 2009 write-down primarily related to the disposal of assets in Asia Pacific and South America. The 2008 write-down primarily related to the impairment of mineral interests at the Fort a la Corne JV in North America and the disposal of assets in North America and Asia Pacific.

 

Debt
DEBT

NOTE 23    DEBT            
             
 At December 31, 2010 At December 31, 2009 
 Current Non-Current Current Non-Current 
Sale-leaseback of refractory ore treatment plant  $ 30 $ 134 $ 24 $ 164 
8 5/8% debentures, net of discount (due 2011)    217   -   -   218 
2012 convertible senior notes, net of discount  -   488   -   463 
2014 convertible senior notes, net of discount  -   489   -   468 
2017 convertible senior notes, net of discount  -   434   -   417 
2019 senior notes, net of discount  -   896   -   896 
2035 senior notes, net of discount   -   598   -   597 
2039 senior notes, net of discount  -   1,087   -   1,087 
PTNNT project financing facility    -   -   87   133 
Yanacocha credit facility and senior notes  -   -   22   140 
Ahafo project facility    10   55   10   65 
Other capital leases    2   1   14   4 
 $ 259 $ 4,182 $ 157 $ 4,652 

Scheduled minimum debt repayments are $259 in 2011, $559 in 2012, $42 in 2013, $533 in 2014, $18 in 2015 and $3,030 thereafter.

 

Sale-Leaseback of Refractory Ore Treatment Plant

 

In September 1994, the Company entered into a sale and leaseback agreement for its refractory ore treatment plant located in Carlin, Nevada. The lease term is 21 years and aggregate future minimum lease payments, which include interest, were $190 and $226 at December 31, 2010 and 2009, respectively. Future minimum lease payments are $39 in 2011, $70 in 2012, $36 in 2013, $36 in 2014 and $9 in 2015. The lease includes purchase options during and at the end of the lease at predetermined prices. The interest rate on this sale-leaseback transaction is 6.36%. In connection with this transaction, the Company entered into certain interest rate hedging contracts that were settled for a gain of $11, which is recognized as a reduction of interest expense over the term of the lease. Including this gain, the effective interest rate on the borrowing is 6.15%. The related asset is specialized, therefore it is not practicable to estimate the fair value of this debt.

 

8 5/8% Senior Notes

 

Newmont has outstanding uncollateralized senior notes with a principal amount of $223 due May 2011 bearing an annual interest rate of 8.63%. Interest is paid semi-annually in May and November and the senior notes are redeemable prior to maturity under certain conditions. Newmont has contracts to hedge the interest rate risk exposure on $222 of these senior notes. The Company receives fixed-rate interest payments at 8.63% and pays floating-rate interest based on periodic London Interbank Offered Rate (“LIBOR”) settings plus a spread, ranging from 2.60% to 7.63% (see Note 17). Using prevailing interest rates on similar instruments, the estimated fair value of these senior notes was $228 and $242 at December 31, 2010, and 2009, respectively. The foregoing fair value estimate was prepared with the assistance of an independent third party and may or may not reflect the actual trading value of this debt.

 

Corporate Revolving Credit Facility

 

The Company has an uncollateralized $2,000 revolving credit facility with a syndicate of commercial banks, which matures in April 2012. The facility contains a letter of credit sub-facility. Interest rates and facility fees vary based on the credit ratings of the Company's senior, uncollateralized, long-term debt. Borrowings under the facilities bear interest at an annual interest rate of LIBOR plus a margin of 0.28% or the lead bank's prime interest rate. The margin adjusts as the Company's credit rating changes. Facility fees accrue at an annual rate of 0.07% of the aggregate commitments. The Company also pays a utilization fee of 0.05% on the amount of revolving credit loans and letters of credit outstanding under the facility for each day on which the sum of such loans and letters of credit exceed 50% of the commitments under the facility. There was $153 and $452 outstanding under the letter of credit sub-facility at December 31, 2010 and 2009, respectively. At December 31, 2010 and 2009, we had no borrowings outstanding under the facility.

 

2012 Convertible Senior Notes

 

In February 2009, the Company issued $518 of uncollateralized convertible senior notes maturing on February 15, 2012 for net proceeds of $504. The notes pay interest semi-annually at a rate of 3.0% per annum and the effective interest rate is 8.5%. The notes are convertible, at the holder's option, equivalent to a conversion price of $46.18 per share of common stock. Upon conversion, the principle amount and all accrued interest will be repaid in cash and any conversion premium will be settled in shares of our common stock or, at our election, cash or any combination of cash and shares of our common stock. When the conversion premium is dilutive to the Company's earnings per share (Newmont's share price exceeds $46.18) the shares are included in the computation of diluted income per common share. The Company is not entitled to redeem the notes prior to their stated maturity dates. Using prevailing interest rates on similar instruments, the estimated fair value of these senior notes was $668 and $580 at December 31, 2010 and 2009, respectively. The foregoing fair value estimates were prepared with the assistance of an independent third party and may or may not reflect the actual trading value of this debt.

 

2014 and 2017 Convertible Senior Notes

 

In July 2007, the Company issued $1,150 uncollateralized convertible senior notes due in 2014 and 2017, each with a principal amount of $575 for net proceeds of $1,126. The 2014 notes, maturing on July 15, 2014, pay interest semi-annually at a rate of 1.25% per annum, and the 2017 notes, maturing on July 15, 2017, pay interest semi-annually at a rate of 1.63% per annum. The effective interest rates are 6.0% and 6.25% for the 2014 and 2017 notes, respectively. The notes are convertible, at the holder's option, at a conversion price of $46.13 per share of common stock. Upon conversion, the principle amount and all accrued interest will be repaid in cash and any conversion premium will be settled in shares of our common stock or, at our election, cash or any combination of cash and shares of our common stock. In connection with the convertible senior notes offering, the Company entered into Call Spread Transactions. The Call Spread Transactions included the purchase of call options and the sale of warrants. As a result of the Call Spread Transactions, the conversion price of $46.13 was effectively increased to $60.17. When the conversion premium and call spread transactions is dilutive to the Company's earnings per share (Newmont's share price exceeds $46.13 and $60.17, respectively) the underlying shares are included in the computation of diluted income per common share. The Company is not entitled to redeem the notes prior to their stated maturity dates. Using prevailing interest rates on similar instruments, the estimated fair value of the 2014 and 2017 senior notes was $697 and $627, respectively, at December 31, 2010 and $584 and $517, respectively, at December 31, 2009. The foregoing fair value estimates were prepared with the assistance of an independent third party and may or may not reflect the actual trading value of this debt.

 

The Company's Consolidated Balance Sheets report the following related to the convertible senior notes:

 At December 31, 2010 At December 31, 2009
 Convertible Senior Notes Due Convertible Senior Notes Due
 2012 2014 2017 2012 2014 2017
Additional paid-in capital$46 $ 97 $ 123 $ 46 $ 97 $ 123
Principal amount$518 $ 575 $ 575 $ 518 $ 575 $ 575
Unamortized debt discount  (30)   (86)   (141)   (55)   (107)   (158)
Net carrying amount$488 $489 $434 $ 463 $ 468 $ 417

For the years ended December 31, 2010 and 2009, the Company recorded $32 and $30 of interest expense for the contractual interest coupon and $63 and $56 of amortization of the debt discount, respectively, related to the convertible senior notes. The remaining unamortized debt discount is amortized over the remaining two, four and seven year periods of the 2012, 2014 and 2017 convertible senior notes, respectively. At December 31, 2010, the if-converted value of the 2012, 2014, and 2017 convertible senior notes exceeded the related principle amounts by $117, $130, and $130, respectively.

 

2019 and 2039 Senior Notes

 

In September 2009, the Company completed a two part public offering of $900 and $1,100 uncollateralized senior notes maturing on October 1, 2019 and October 1, 2039, respectively. Net proceeds from the 2019 and 2039 notes were $895 and $1,080, respectively. The 2019 notes pay interest semi-annually at a rate of 5.13% per annum and the 2039 notes pay semi-annual interest of 6.25% per annum. Using prevailing interest rates on similar instruments, the estimated fair value of the 2019 and 2039 senior notes was $984 and $1,189, respectively, at December 31, 2010 and $901 and $1,080, respectively, at December 31, 2009. The foregoing fair value estimates were prepared with the assistance of an independent third party and may or may not reflect the actual trading value of this debt.

 

2035 Senior Notes

 

In March 2005, Newmont issued uncollateralized senior notes with a principal amount of $600 due April 2035 bearing an annual interest rate of 5 7/8%. Interest on the notes is paid semi-annually in April and October. Using prevailing interest rates on similar instruments, the estimated fair value of these senior notes was $624 and $566 at December 31, 2010 and 2009, respectively. The foregoing fair value estimate was prepared with the assistance of an independent third party and may or may not reflect the actual trading value of this debt.

 

Project Financings

 

PTNNT Project Financing Facility

 

PTNNT had a project financing facility with a syndicate of banks. The scheduled repayments of this debt were semi-annual installments of $43 through November 2010 and $22 from May 2011 through November 2013. On February 23, 2010, PTNNT repaid the $220 remaining balance under the PTNNT project financing facility.

 

Yanacocha Credit Facility and Senior Notes

 

During 2006, Yanacocha entered into an uncollateralized $100 bank financing with a syndicate of Peruvian commercial banks and issued $100 of senior notes into the Peruvian capital markets. The credit facility and senior notes principal and interest were fully repaid in November 2010.

 

Ahafo

 

Newmont Ghana Gold Limited (“NGGL”) has an $85 project financing agreement with the International Finance Corporation (“IFC”) ($75) and a commercial lender ($10). NGGL borrowed $75 from the IFC in December 2008 and borrowed the remaining $10 in February 2009. Amounts borrowed are guaranteed by Newmont. Semi-annual payments through April 2017 are required. Borrowings bear interest of LIBOR plus 3.5%.

 

Debt Covenants

 

The Company's senior notes and sale-leaseback of the refractory ore treatment plant debt facilities contain various covenants and default provisions including payment defaults, limitation on liens, limitation on sales and leaseback agreements and merger restrictions.

 

The Ahafo project facility contains a financial ratio covenant requiring the Company to maintain a net debt (total debt net of cash and cash equivalents) to EBITDA (earnings before interest expense, income and mining taxes, depreciation and amortization) ratio of less than or equal to 4.0 and a net debt to total capitalization ratio of less than or equal to 62.5%.

 

In addition to the covenants noted above, the corporate revolving credit facility contains a financial ratio covenant requiring the Company to maintain a net debt (total debt net of cash and cash equivalents) to total capitalization ratio of less than or equal to 62.5%. Furthermore, the corporate revolving credit facility contains covenants limiting the sale of all or substantially all of the Company's assets, certain change of control provisions and a negative pledge on certain assets.

 

At December 31, 2010 and 2009, the Company and its related entities were in compliance with all debt covenants and provisions related to potential defaults.

 

 

Other Liabilities
OTHER LIABILITIES
NOTE 24    OTHER LIABILITIES      
         
   At December 31, 
   2010 2009 
 Other current liabilities:      
  Refinery metal payable$617 $671 
  Accrued operating costs 217  131 
  Taxes other than income and mining 135  73 
  Royalties 90  58 
  Accrued capital expenditures 83  115 
  Interest 66  72 
  Reclamation and remediation liabilities 64  54 
  Deferred income tax 54  17 
  Boddington contingent consideration 32  16 
  Other 60  110 
   $1,418 $1,317 
         
 Other long-term liabilities:      
  Boddington contingent consideration$51 $69 
  Power supply agreements 45  - 
  Income and mining taxes   36  38 
  Other   89  80 
   $221 $187 
Accumulated Other Comprehensive Income
ACCUMULATED OTHER COMPREHENSIVE INCOME
NOTE 25    ACCUMULATED OTHER COMPREHENSIVE INCOME
         
   At December 31, 2010 
   2010 2009 
 Unrealized gain on marketable securities, net of $200 and $138 tax expense, respectively $902 $635 
 Foreign currency translation adjustments    155  57 
 Pension liability adjustments, net of $95 and $86 tax benefit, respectively  (176)  (161) 
 Other post-retirement benefit adjustments, net of $6 and $4 tax expense, respectively  11  9 
 Changes in fair value of cash flow hedge instruments, net of tax expense and noncontrolling interests of $97 and $38, respectively  216  86 
   $1,108 $626 
Related Party Transactions
RELATED PARTY TRANSACTIONS
NOTE 26    RELATED PARTY TRANSACTIONS  
             
 Newmont had transactions with AGR, as follows:  
             
    Years Ended December 31, 
    2010 2009 2008 
  Gold and silver sales $3 $10 $10 
  Refining fees paid $- $3 $3 
             
 See Note 11 for a discussion of Newmont's investment in AGR.
Net Change in Operating Assets and Liabilities
NET CHANGE IN OPERATING ASSETS AND LIABILITIES

NOTE 27 NET CHANGE IN OPERATING ASSETS AND LIABILITIES

 

Net cash provided from operations attributable to the net change in operating assets and liabilities is composed of the following:

 

   Years Ended December 31, 
   2010 2009 2008 
 Decrease (increase) in operating assets:         
  Trade and accounts receivable  $(153) $42 $81 
  Inventories, stockpiles and ore on leach pads   (501)  (378)  (343) 
  EGR refinery assets   116  (508)  38 
  Other assets   (87)  (19)  (208) 
 Increase (decrease) in operating liabilities:         
  Accounts payable and other accrued liabilities   38  177  (54) 
  EGR refinery liabilities   (116)  508  (38) 
  Reclamation liabilities   (51)  (49)  (103) 
   $(754) $(227) $(627) 
Supplemental Cash Flow Information
SUPPLEMENTAL CASH FLOW INFORMATION
NOTE 28    SUPPLEMENTAL CASH FLOW INFORMATION
           
  Years Ended December 31, 
  2010 2009 2008 
Income and mining taxes, net of refunds   $1,185 $431 $816 
Pension plan and other benefit contributions   $163 $58  $76  
Interest, net of amounts capitalized   $228 $117 $96  

Noncash Investing Activities and Financing Activities

 

Minera Yanacocha entered into mining equipment leases that resulted in non-cash increases to Property, plant and mine development, net and Long-term debt of $12 in 2008. In 2008, Nevada entered into warehouse equipment leases that resulted in non-cash increases to Property, plant and mine development, net and Long-term debt of $2.

 

Operating Lease Commitments
OPERATING LEASE COMMITMENTS

NOTE 29    OPERATING LEASE COMMITMENTS

 

The Company leases certain assets, such as equipment and facilities, under operating leases expiring at various dates through 2020. Future minimum annual lease payments are $26 in 2011, $23 in 2012, $18 in 2013, $8 in 2014, $8 in 2015 and $30 thereafter, totaling $113. Rent expense for 2010, 2009 and 2008 was $46, $48 and $36, respectively.

 

Condensed Consolidating Financial Statements
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

NOTE 30    CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The following Consolidating Financial Statements are presented to satisfy disclosure requirements of Rule 3-10(e) of Regulation S-X resulting from the inclusion of Newmont USA Limited (“Newmont USA”), a wholly-owned subsidiary of Newmont, as a co-registrant with Newmont on a shelf registration statement on Form S-3 filed under the Securities Act of 1933 under which securities of Newmont (including debt securities which may be guaranteed by Newmont USA) may be issued from time to time (the “Shelf Registration Statement”). To the extent Newmont issues debt securities under the Shelf Registration Statement, it is expected that Newmont USA will provide a guarantee of that debt. In accordance with Rule 3-10(e) of Regulation S-X, Newmont USA, as the subsidiary guarantor, is 100% owned by Newmont, the guarantee will be full and unconditional, and it is not expected that any other subsidiary of Newmont will guarantee any security issued under the Shelf Registration Statement. There are no significant restrictions on the ability of Newmont USA to obtain funds from its subsidiaries by dividend or loan.

 

                  
    Years Ended December 31, 2010
        Newmont
    Newmont      Mining
    Mining Newmont Other  Corporation
Condensed Consolidating Statement of Income Corporation USA Subsidiaries Eliminations Consolidated
                  
Sales $- $6,568 $2,972 $- $9,540
                  
Costs and expenses               
 Costs applicable to sales (1)  -  2,171  1,341  (28)  3,484
 Amortization    -  601  345  (1)  945
 Reclamation and remediation   -  48  17  -  65
 Exploration    -  131  87  -  218
 Advanced projects, research and development    -  110  107  (1)  216
 General and administrative    -  144  4  30  178
 Write-down of property, plant and mine               
  development  -  5  1  -  6
 Other expense, net  -  183  78  -  261
     -  3,393  1,980  -  5,373
                  
Other income (expense)                
 Other income, net    (4)  29  84  -  109
 Interest income - intercompany    161  7  5  (173)  -
 Interest expense - intercompany    (11)  -  (162)  173  -
 Interest expense, net    (246)  (27)  (6)  -  (279)
     (100)  9  (79)  -  (170)
Income before income and mining tax and other items    (100)  3,184  913  -  3,997
Income and mining tax expense    479  (1,114)  (221)  -  (856)
Equity income (loss) of affiliates    1,926  2  281  (2,206)  3
Income from continuing operations    2,305  2,072  973  (2,206)  3,144
Income (loss) from discontinued operations    (28)  2  (30)  28  (28)
Net income  2,277  2,074  943  (2,178)  3,116
Net income attributable to noncontrolling interests  -  (1,026)  34  153  (839)
Net income attributable to Newmont stockholders $2,277 $1,048 $977 $(2,025) $2,277
                  
(1)  Excludes Amortization and Reclamation and remediation.         

                  
    Years Ended December 31, 2009
                Newmont
    Newmont         Mining
    Mining Newmont Other    Corporation
Condensed Consolidating Statement of Income Corporation USA Subsidiaries Eliminations Consolidated
                  
Sales $- $5,911 $1,794 $- $7,705
                  
Costs and expenses               
 Costs applicable to sales (1)  -  2,128  903  (23)  3,008
 Amortization    -  565  242  (1)  806
 Reclamation and remediation   -  41  18  -  59
 Exploration    -  101  86  -  187
 Advanced projects, research and development    -  66  71  (2)  135
 General and administrative    -  129  4  26  159
 Write-down of property, plant and mine               
  development  -  6  1  -  7
 Other expense, net  9  160  189  -  358
     9  3,196  1,514  -  4,719
Other income (expense)                
 Other income, net    (11)  27  72  -  88
 Interest income - intercompany    90  7  5  (102)  -
 Interest expense - intercompany    (9)  -  (93)  102  -
 Interest expense, net    (65)  (47)  (8)  -  (120)
     5  (13)  (24)  -  (32)
Income before income and mining tax and other items  (4)  2,702  256  -  2,954
Income and mining tax expense    1  (781)  (49)  -  (829)
Equity income (loss) of affiliates    1,316  5  185  (1,522)  (16)
Income from continuing operations    1,313  1,926  392  (1,522)  2,109
Income (loss) from discontinued operations    (16)  (16)  -  16  (16)
Net income  1,297  1,910  392  (1,506)  2,093
Net income attributable to noncontrolling interests  -  (795)  (77)  76  (796)
Net income attributable to Newmont stockholders $1,297 $1,115 $315 $(1,430) $1,297
                  
(1)Excludes Amortization and Reclamation and remediation.            

                  
    Years Ended December 31, 2008
                Newmont
    Newmont         Mining
    Mining Newmont Other    Corporation
Condensed Consolidating Statement of Income Corporation USA Subsidiaries Eliminations Consolidated
                  
Sales $- $4,638 $1,486 $- $6,124
                  
Costs and expenses               
 Costs applicable to sales (1)  -  2,193  866  (21)  3,038
 Amortization    -  549  190  (1)  738
 Reclamation and remediation   -  85  57  -  142
 Exploration    -  131  82  -  213
 Advanced projects, research and development    -  63  107  (4)  166
 General and administrative    -  113  6  25  144
 Write-down of property, plant and mine               
  development  -  15  122  -  137
 Other expense, net  1  176  62  1  240
     1  3,325  1,492  -  4,818
Other income (expense)                
 Other income, net    (40)  112  51  -  123
 Interest income - intercompany    278  24  -  (302)  -
 Interest expense - intercompany    (8)  -  (294)  302  -
 Interest expense, net    (74)  (56)  (5)  -  (135)
     156  80  (248)  -  (12)
Income before income and mining tax and other items  155  1,393  (254)  -  1,294
Income and mining tax expense  (55)  (132)  45  -  (142)
Equity income (loss) of affiliates    718  4  102  (829)  (5)
Income from continuing operations    818  1,265  (107)  (829)  1,147
Income (loss) from discontinued operations    13  (6)  3  3  13
Net income   831  1,259  (104)  (826)  1,160
Net income attributable to noncontrolling interests  -  (347)  10  8  (329)
Net income attributable to Newmont stockholders $831 $912 $(94) $(818) $831
                  
(1) Excludes Amortization and Reclamation and remediation.            

    For the Year Ended December 31, 2010
                Newmont
    Newmont         Mining
    MiningNewmontOther   Corporation
Condensed Consolidating Statement of Cash FlowsCorporationUSASubsidiariesEliminationsConsolidated
Operating activities:               
  Net income$2,277 $2,074 $943 $(2,178) $3,116 
  Adjustments   (600)  865  (1,625)  2,178  818 
  Net change in operating assets and liabilities   (57)  (512)  (185)  -  (754) 
Net cash provided from (used in) continuing operations   1,620  2,427  (867)  -  3,180 
Net cash used in discontinued operations   -  (13)  -  -  (13) 
Net cash provided from (used in) operations   1,620  2,414  (867)  -  3,167 
Investing activities:               
  Additions to property, plant and mine development   -  (721)  (681)  -  (1,402) 
  Acquisitions, net    -  -  (4)  -  (4) 
  Proceeds from sale of marketable securities -  -  3  -  3 
  Purchases of marketable securities   -  (5)  (23)  -  (28) 
  Proceeds from sale of other assets -  16  40  -  56 
  Other   -  -  (44)  -  (44) 
Net cash used in investing activities   -  (710)  (709)  -  (1,419) 
Financing activities:               
  Net repayments -  (420)  (10)  -  (430) 
  Net intercompany borrowings (repayments) (1,442)  (152)  1,730  (136)  - 
  Proceeds from stock issuance 60  -  -  -  60 
  Sale of subsidiary shares to noncontrolling interests -  229  -  -  229 
  Acquisition of subsidiary shares from noncontrolling                
   interests -  -  (110)  -  (110) 
  Dividends paid to noncontrolling interests -  (598)  -  136  (462) 
  Dividends paid to common stockholders   (246)  -  -  -  (246) 
  Change in restricted cash and other   -  46  (2)  -  44 
Net cash provided from (used in) financing activities   (1,628)  (895)  1,608  -  (915) 
Effect of exchange rate changes on cash   -  1  7  -  8 
Net change in cash and cash equivalents   (8)  810  39  -  841 
Cash and cash equivalents at beginning of period   8  3,067  140  -  3,215 
Cash and cash equivalents at end of period  $- $3,877 $179 $- $4,056 

    For the Year Ended December 31, 2009
                Newmont
    Newmont         Mining
    MiningNewmontOther   Corporation
Condensed Consolidating Statement of Cash FlowsCorporationUSASubsidiariesEliminationsConsolidated
Operating activities:               
  Net income (loss)$1,297 $1,910 $392 $(1,506) $2,093 
  Adjustments   75  683  (1,216)  1,506  1,048 
  Net change in operating assets and liabilities   135  (400)  38  -  (227) 
Net cash provided from (used in) continuing operations   1,507  2,193  (786)  -  2,914 
Net cash provided from discontinued operations   -  33  -  -  33 
Net cash provided from (used in) operations   1,507  2,226  (786)  -  2,947 
Investing activities:               
  Additions to property, plant and mine development   -  (470)  (1,299)  -  (1,769) 
  Acquisitions, net    (8)  (11)  (988)  -  (1,007) 
  Proceeds from sale of marketable securities -  -  17  -  17 
  Purchases of marketable securities -  -  (5)  -  (5) 
  Proceeds from sale of other assets -  15  3  -  18 
  Other   -  -  (35)  -  (35) 
Net cash used in investing activities   (8)  (466)  (2,307)  -  (2,781) 
Financing activities:               
  Net borrowings (repayments)   1,722  (154)  -  -  1,568 
  Net intercompany borrowings (repayments)  (4,298)  953  3,345  -  - 
  Proceeds from stock issuance   1,278  -  -  -  1,278 
  Sale of subsidiary shares to noncontrolling interests -  638  -  -  638 
  Acquisition of subsidiary shares from noncontrolling               
   interests -  -  (287)  -  (287) 
  Dividends paid to noncontrolling interests -  (391)  (3)  -  (394) 
  Dividends paid to common stockholders   (196)  -  -  -  (196) 
  Change in restricted cash and other   2  (48)  11  -  (35) 
Net cash provided from (used in) financing activities of               
 continuing operations (1,492)  998  3,066  -  2,572 
Net cash used in financing activities of discontinued               
 operations  -  (2)  -  -  (2) 
Net cash provided from (used in) financing activities   (1,492)  996  3,066  -  2,570 
Effect of exchange rate changes on cash   1  1  42  -  44 
Net change in cash and cash equivalents   8  2,757  15  -  2,780 
Cash and cash equivalents at beginning of period   -  310  125  -  435 
Cash and cash equivalents at end of period  $8 $3,067 $140 $- $3,215 

    For the Year Ended December 31, 2008
                Newmont
    Newmont         Mining
    MiningNewmontOther   Corporation
Condensed Consolidating Statement of Cash FlowsCorporationUSASubsidiariesEliminationsConsolidated
Operating activities:               
  Net income (loss)$831 $1,259 $(104) $(826) $1,160 
  Adjustments   49  419  (430)  826  864 
  Net change in operating assets and liabilities   17  (575)  (69)  -  (627) 
Net cash provided from (used in) continuing operations   897  1,103  (603)  -  1,397 
Net cash provided from (used in) discontinued operations   -  (123)  19  -  (104) 
Net cash provided from (used in) operations   897  980  (584)  -  1,293 
Investing activities:               
  Additions to property, plant and mine development   -  (707)  (1,163)  -  (1,870) 
  Acquisitions, net    -  (7)  (318)  -  (325) 
  Proceeds from sale of marketable securities -  -  50  -  50 
  Purchases of marketable securities -  -  (17)  -  (17) 
  Proceeds from sale of other assets -  17  35  -  52 
  Other   -  -  (36)  -  (36) 
Net cash used in investing activities of continuing operations -  (697)  (1,449)  -  (2,146) 
Net cash provided from (used in) investing activities of               
 discontinued operations -  (15)  4  -  (11) 
Net cash used in investing activities   -  (712)  (1,445)  -  (2,157) 
Financing activities:               
  Net borrowings (repayments)   757  (116)  (46)  -  595 
  Net intercompany borrowings (repayments)  (1,518)  (287)  1,805  -  - 
  Proceeds from stock issuance   29  -  -  -  29 
  Dividends paid to noncontrolling interests -  (385)  (4)  -  (389) 
  Dividends paid to common stockholders   (182)  -  -  -  (182) 
  Change in restricted cash and other   17  48  9  -  74 
Net cash provided from (used in) financing activities of               
 continuing operations (897)  (740)  1,764  -  127 
Net cash used in financing activities of discontinued               
 operations  -  (4)  -  -  (4) 
Net cash provided from (used in) financing activities   (897)  (744)  1,764  -  123 
Effect of exchange rate changes on cash   -  (3)  (51)  -  (54) 
Net change in cash and cash equivalents   -  (479)  (316)  -  (795) 
Cash and cash equivalents at beginning of period   -  789  441  -  1,230 
Cash and cash equivalents at end of period  $- $310 $125 $- $435 

                  
    At December 31, 2010
            Newmont
    Newmont       Mining
    Mining Newmont Other   Corporation
Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated
Assets               
 Cash and cash equivalents   $- $3,877 $179 $- $4,056
 Trade receivables    -  501  81  -  582
 Accounts receivable    2,222  802  265  (3,201)  88
 Investments  -  72  41  -  113
 Inventories    -  388  270  -  658
 Stockpiles and ore on leach pads    -  513  104  -  617
 Deferred income tax assets    -  170  7  -  177
 Other current assets    -  77  885  -  962
  Current assets    2,222  6,400  1,832  (3,201)  7,253
 Property, plant and mine development, net    -  5,364  7,562  (19)  12,907
 Investments    -  25  1,543  -  1,568
 Investments in subsidiaries    12,295  35  1,909  (14,239)  -
 Stockpiles and ore on leach pads    -  1,347  410  -  1,757
 Deferred income tax assets    638  690  109  -  1,437
 Other long-term assets    2,675  496  584  (3,014)  741
  Total assets   $17,830 $14,357 $13,949 $(20,473) $25,663
                  
Liabilities               
 Debt   $- $249 $10 $- $259
 Accounts payable    355  1,269  1,996  (3,193)  427
 Employee-related benefits    -  222  66  -  288
 Income and mining taxes    19  261  75  -  355
 Other current liabilities    56  373  2,959  (1,970)  1,418
  Current liabilities    430  2,374  5,106  (5,163)  2,747
 Debt    3,991  135  56  -  4,182
 Reclamation and remediation liabilities    -  676  308  -  984
 Deferred income tax liabilities    -  513  975  -  1,488
 Employee-related benefits    5  244  76  -  325
 Other long-term liabilities    375  56  2,824  (3,034)  221
  Total liabilities    4,801  3,998  9,345  (8,197)  9,947
Equity               
 Preferred stock    -  -  61  (61)  -
 Common stock    778  -  -  -  778
 Additional paid-in capital    7,963  2,722  3,894  (6,300)  8,279
 Accumulated other comprehensive income  1,108  (75)  1,180  (1,105)  1,108
 Retained earnings   3,180  4,850  (1,109)  (3,741)  3,180
 Newmont stockholders’ equity    13,029  7,497  4,026  (11,207)  13,345
 Noncontrolling interests    -  2,862  578  (1,069)  2,371
  Total equity  13,029  10,359  4,604  (12,276)  15,716
  Total liabilities and equity $17,830 $14,357 $13,949 $(20,473) $25,663
                  

                  
    At December 31, 2009
            Newmont
    Newmont       Mining
    Mining Newmont Other   Corporation
Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated
Assets               
 Cash and cash equivalents   $8 $3,067 $140 $- $3,215
 Trade receivables    -  417  21  -  438
 Accounts receivable    2,338  673  363  (3,272)  102
 Investments  -  4  52  -  56
 Inventories    -  307  186  -  493
 Stockpiles and ore on leach pads    -  331  72  -  403
 Deferred income tax assets    -  157  58  -  215
 Other current assets    -  78  822  -  900
  Current assets    2,346  5,034  1,714  (3,272)  5,822
 Property, plant and mine development, net    -  5,195  7,193  (18)  12,370
 Investments    -  26  1,160  -  1,186
 Investments in subsidiaries    9,842  31  1,089  (10,962)  -
 Stockpiles and ore on leach pads    -  1,323  179  -  1,502
 Deferred income tax assets    -  844  93  -  937
 Other long-term assets    2,551  357  419  (2,845)  482
  Total assets   $14,739 $12,810 $11,847 $(17,097) $22,299
                  
Liabilities               
 Debt   $- $147 $10 $- $157
 Accounts payable    46  1,201  2,413  (3,264)  396
 Employee-related benefits    -  202  48  -  250
 Income and mining taxes    -  192  8  -  200
 Other current liabilities    58  281  2,949  (1,971)  1,317
  Current liabilities    104  2,023  5,428  (5,235)  2,320
 Debt  3,928  659  65  -  4,652
 Reclamation and remediation liabilities    -  565  240  -  805
 Deferred income tax liabilities    31  494  816  -  1,341
 Employee-related benefits    4  324  53  -  381
 Other long-term liabilities    338  75  2,637  (2,863)  187
  Total liabilities    4,405  4,140  9,239  (8,098)  9,686
Equity               
 Preferred stock    -  -  61  (61)  -
 Common stock    770  -  -  -  770
 Additional paid-in capital    7,789  2,709  3,874  (6,214)  8,158
 Accumulated other comprehensive income  626  (125)  738  (613)  626
 Retained earnings  1,149  3,801  (2,080)  (1,721)  1,149
 Newmont stockholders’ equity    10,334  6,385  2,593  (8,609)  10,703
 Noncontrolling interests    -  2,285  15  (390)  1,910
  Total equity  10,334  8,670  2,608  (8,999)  12,613
  Total liabilities and equity $14,739 $12,810 $11,847 $(17,097) $22,299
                  
Commitments and Contingencies
COMMITMENTS AND CONTINGENCIES

NOTE 31    COMMITMENTS AND CONTINGENCIES

 

General

 

The Company follows ASC guidance in determining its accruals and disclosures with respect to loss contingencies. Accordingly, estimated losses from loss contingencies are accrued by a charge to income when information available prior to issuance of the financial statements indicates that it is probable (greater than a 75% probability) that a liability could be incurred and the amount of the loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred.

 

Operating Segments

 

The Company's operating segments are identified in Note 3. Except as noted in this paragraph, all of the Company's commitments and contingencies specifically described in this Note 31 relate to the Corporate and Other reportable segment. The PT Newmont Minahasa Raya matters relate to the Asia Pacific reportable segment. The Yanacocha matters relate to the South America reportable segment. The PTNNT matters relate to the Asia Pacific reportable segment.

 

Environmental Matters

 

The Company's mining and exploration activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and are generally becoming more restrictive. The Company conducts its operations so as to protect the public health and environment and believes its operations are in compliance with applicable laws and regulations in all material respects. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations, but cannot predict the full amount of such future expenditures.

 

Estimated future reclamation costs are based principally on legal and regulatory requirements. At December 31, 2010 and 2009, $904 and $698, respectively, were accrued for reclamation costs relating to currently producing mineral properties in accordance with asset retirement obligation guidance. The current portions of $46 and $36 at December 31, 2010 and 2009, respectively, are included in Other current liabilities.

 

In addition, the Company is involved in several matters concerning environmental obligations associated with former mining activities. Generally, these matters concern developing and implementing remediation plans at the various sites involved. The Company believes that the related environmental obligations associated with these sites are similar in nature with respect to the development of remediation plans, their risk profile and the compliance required to meet general environmental standards. Based upon the Company's best estimate of its liability for these matters, $144 and $161 were accrued for such obligations at December 31, 2010 and 2009, respectively. These amounts are included in Other current liabilities and Reclamation and remediation liabilities. Depending upon the ultimate resolution of these matters, the Company believes that it is reasonably possible that the liability for these matters could be as much as 164% greater or 4% lower than the amount accrued at December 31, 2010. The amounts accrued for these matters are reviewed periodically based upon facts and circumstances available at the time. Changes in estimates are recorded in Reclamation and remediation in the period estimates are revised.

 

Details about certain of the more significant matters involved are discussed below.

 

Dawn Mining Company LLC (“Dawn”) - 51% Newmont Owned

 

Midnite Mine Site.    Dawn previously leased an open pit uranium mine, currently inactive, on the Spokane Indian Reservation in the State of Washington. The mine site is subject to regulation by agencies of the U.S. Department of Interior (the Bureau of Indian Affairs and the Bureau of Land Management), as well as the United States Environmental Protection Agency (“EPA”).

 

In 1991, Dawn's mining lease at the mine was terminated. As a result, Dawn was required to file a formal mine closure and reclamation plan. The Department of Interior commenced an analysis of Dawn's proposed plan and alternate closure and reclamation plans for the mine. Work on this analysis has been suspended indefinitely. In mid-2000, the mine was included on the National Priorities List under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”). In March 2003, the EPA notified Dawn and Newmont that it had thus far expended $12 on the Remedial Investigation/Feasibility Study (“RI/FS”) under CERCLA. In October 2005, the EPA issued the RI/FS on this property in which it indicated a preferred remedy that it estimated to cost approximately $150. Newmont and Dawn filed comments on the RI/FS with the EPA in January 2006. On October 3, 2006, the EPA issued a final Record of Decision in which it formally selected the preferred remedy identified in the RI/FS.

 

On January 28, 2005, the EPA filed a lawsuit against Dawn and Newmont under CERCLA in the U.S. District Court for the Eastern District of Washington. The EPA has asserted that Dawn and Newmont are liable for reclamation or remediation work and costs at the mine. Dawn does not have sufficient funds to pay for the reclamation plan it proposed or for any alternate plan, or for any additional remediation work or costs at the mine.

 

On July 14, 2008, after a bench trial, the Court held Newmont liable under CERCLA as an “operator” of the Midnite Mine. The Court previously ruled on summary judgment that both the U.S. Government and Dawn were liable under CERCLA. On October 17, 2008 the Court issued its written decision in the bench trial. The Court found Dawn and Newmont jointly and severally liable under CERCLA for past and future response costs, and ruled that each of Dawn and Newmont are responsible to pay one-third of such costs. The Court also found the U.S. Government liable on Dawn's and Newmont's contribution claim, and ruled that the U.S. Government is responsible to pay one-third of all past and future response costs. In November 2008, all parties appealed the Court's ruling. Also in November 2008, the EPA issued an Administrative Order pursuant to Section 106 of CERCLA ordering Dawn and Newmont to conduct water treatment, testing and other preliminary remedial actions. Newmont has initiated those preliminary remedial actions.

 

Newmont intends to continue to vigorously defend this matter and cannot reasonably predict the outcome of this lawsuit or the likelihood of any other action against Dawn or Newmont arising from this matter.

 

Dawn Mill Site.    Dawn also owns a uranium mill site facility, located on private land near Ford, Washington, which is subject to state and federal regulation. In late 1999, Dawn sought and later received approval from the State of Washington for a revised closure plan that expedites the reclamation process at the site. The currently approved plan for the site is guaranteed by Newmont.

 

Newmont Canada Corporation (“Newmont Canada”) - 100% Newmont Owned

 

On November 11, 2008, St. Andrew Goldfields Ltd. (“St. Andrew”) filed an Application in the Superior Court of Justice in Ontario, Canada, seeking a declaration to clarify St. Andrew's royalty obligations regarding certain mineral rights and property formerly owned by Newmont Canada and now owned by St. Andrew.

 

Newmont Canada purchased the property, called the Holt-McDermott property (“Holt Property”), from Barrick Gold Corporation (“Barrick”) in October 2004. At that time, Newmont Canada entered into a royalty agreement with Barrick (the “Barrick Royalty”), allowing Barrick to retain a royalty on the Holt Property. In August 2006, Newmont Canada sold all of its interests in the Holt Property to Holloway Mining Company (“Holloway”) in exchange for common stock issued by Holloway. In September 2006, Newmont Canada entered into a purchase and sale agreement with St. Andrew (the “2006 Agreement”), under which St. Andrew acquired all the common stock of Holloway. In 2008, Barrick sold its Barrick Royalty to Royal Gold, Inc. (“Royal Gold”).

 

In the court proceedings, St. Andrew alleged that in the 2006 Agreement it only agreed to assume royalty obligations equal to 0.013% of net smelter returns from operations on the Holt Property. Such an interpretation of the 2006 Agreement would make Newmont responsible for any royalties exceeding that amount payable to Royal Gold pursuant to the Barrick Royalty, which is a royalty determined by multiplying 0.00013 by the quarterly average gold price. On July 23, 2009, the Superior Court issued a decision finding in favor of St. Andrews' interpretation. On August 21, 2009, Newmont Canada appealed the decision. If the Court of Appeals upholds the lower court ruling, Newmont will be liable for the sliding scale royalty, which would equal a 13% royalty at a quarterly average gold price of $1,000, minus a 0.013% of net smelter returns. There is no cap on the royalty at issue and it increases or decreases with the gold price, based upon the multiplication of 0.00013 by the quarterly average gold price. Newmont Canada intends to continue to vigorously defend this matter but cannot reasonably predict the outcome.

 

Newmont USA Limited - 100% Newmont Owned

 

Grey Eagle Mine Site.    By letter dated September 3, 2002, the EPA notified Newmont that the EPA had expended $3 in response costs to address environmental conditions associated with a historic tailings pile located at the Grey Eagle Mine site near Happy Camp, California, and requested that Newmont pay those costs. The EPA has identified four potentially responsible parties, including Newmont. Newmont does not believe it has any liability for environmental conditions at the Grey Eagle Mine site, and intends to vigorously defend any formal claims by the EPA. Newmont cannot reasonably predict the likelihood or outcome of any future action against it arising from this matter.

 

Ross-Adams Mine Site.    By letter dated June 5, 2007, the U.S. Forest Service notified Newmont that it had expended approximately $0.3 in response costs to address environmental conditions at the Ross-Adams mine in Prince of Wales, Alaska, and requested Newmont USA Limited pay those costs and perform an Engineering Evaluation/Cost Analysis (“EE/CA”) to assess what future response activities might need to be completed at the site. Newmont intends to vigorously defend any formal claims by the EPA. Newmont has agreed to perform the EE/CA. Newmont cannot reasonably predict the likelihood or outcome of any future action against it arising from this matter.

 

PT Newmont Minahasa Raya (“PTNMR”) - 80% Newmont Owned

 

On March 22, 2007, an Indonesian non-governmental organization named Wahana Lingkungan Hidup Indonesia (“WALHI”) filed a civil suit against PTNMR, the Newmont subsidiary that operated the Minahasa mine in Indonesia, and Indonesia's Ministry of Energy and Mineral Resources and Ministry for the Environment, alleging pollution from the disposal of mine tailings into Buyat Bay, and seeking a court order requiring PTNMR to fund a 25-year monitoring program in relation to Buyat Bay. In December 2007, the court ruled in PTNMR's favor and found that WALHI's allegations of pollution in Buyat Bay were without merit. In March 2008, WALHI appealed this decision to the Indonesian High Court. On January 27, 2010, the Indonesian High Court upheld the December 2007 ruling in favor of PTNMR. On May 17, 2010, WALHI filed an appeal of the January 27, 2010 Indonesian High Court ruling seeking review from the Indonesian Supreme Court. The appeal by WALHI is being reviewed by the Indonesian Supreme Court. Independent sampling and testing of Buyat Bay water and fish, as well as area residents, conducted by the World Health Organization and the Australian Commonwealth Scientific and Industrial Research Organization, confirm that PTNMR has not polluted the Buyat Bay environment, and, therefore, has not adversely affected the fish in Buyat Bay or the health of nearby residents. The Company remains steadfast that it has not caused pollution or health problems.

 

Other Legal Matters

 

Minera Yanacocha S.R.L. (“Yanacocha”) - 51.35% Newmont Owned

 

Choropampa.    In June 2000, a transport contractor of Yanacocha spilled approximately 151 kilograms of elemental mercury near the town of Choropampa, Peru, which is located 53 miles (85 kilometers) southwest of the Yanacocha mine. Elemental mercury is not used in Yanacocha's operations but is a by-product of gold mining and was sold to a Lima firm for use in medical instruments and industrial applications. A comprehensive health and environmental remediation program was undertaken by Yanacocha in response to the incident. In August 2000, Yanacocha paid under protest a fine of 1,740,000 Peruvian soles (approximately $0.5) to the Peruvian government. Yanacocha has entered into settlement agreements with a number of individuals impacted by the incident. As compensation for the disruption and inconvenience caused by the incident, Yanacocha entered into agreements with and provided a variety of public works in the three communities impacted by this incident. Yanacocha cannot predict the likelihood of additional expenditures related to this matter.

 

Additional lawsuits relating to the Choropampa incident were filed against Yanacocha in the local courts of Cajamarca, Peru, in May 2002 by over 900 Peruvian citizens. A significant number of the plaintiffs in these lawsuits entered into settlement agreements with Yanacocha prior to filing such claims. In April 2008, the Peruvian Supreme Court upheld the validity of these settlement agreements, which the Company expects to result in the dismissal of all claims brought by previously settled plaintiffs. Yanacocha has also entered into settlement agreements with approximately 350 additional plaintiffs. The claims asserted by approximately 200 plaintiffs remain. Neither the Company nor Yanacocha can reasonably estimate the ultimate loss relating to such claims.

 

PT Newmont Nusa Tenggara (“PTNNT”) – 31.5% Newmont Direct Ownership

 

Under the Batu Hijau Contract of Work, beginning in 2006 and continuing through 2010, a portion of PTNNT's shares were required to be offered for sale, first, to the Indonesian government or, second, to Indonesian nationals, equal to the difference between the following percentages and the percentage of shares already owned by the Indonesian government or Indonesian nationals (if such number is positive): 23% by March 31, 2006; 30% by March 31, 2007; 37% by March 31, 2008; 44% by March 31, 2009; and 51% by March 31, 2010. As PT Pukuafu Indah (“PTPI”), an Indonesian national, has owned a 20% interest in PTNNT at all relevant times, in 2006, a 3% interest was required to be offered for sale and, in each of 2007 through 2010, an additional 7% interest was required to be offered (for an aggregate 31% interest). The price at which such interests were to be offered for sale to the Indonesian parties is the highest of the then-current replacement cost, the price at which shares would be accepted for listing on the Indonesian Stock Exchange, or the fair market value of such interest as a going concern, as agreed with the Indonesian government.

 

In accordance with the Contract of Work, an offer to sell a 3% interest was made to the Indonesian government in 2006 and an offer for an additional 7% interest was made in each of 2007, 2008 and 2009, and the offer for the final 7% interest was made in March 2010. While the central government declined to participate in the 2006 and 2007 offers, local governments in the area in which the Batu Hijau mine is located expressed interest in acquiring shares, as did various Indonesian nationals. After disagreement with the government over whether the government's first right to purchase had expired and receipt of Notices of Default from the government claiming breach and threatening termination of the Contract of Work, on March 3, 2008, the Indonesian government filed for international arbitration as provided under the Contract of Work, as did PTNNT. In the arbitration proceeding, PTNNT sought a declaration that the Indonesian government was not entitled to terminate the Contract of Work and additional declarations pertaining to the procedures for divesting the shares. For its part, the Indonesian government sought declarations that PTNNT was in default of its divestiture obligations, that the government may terminate the Contract of Work and recover damages for breach of the Contract of Work, and that PTNNT must cause shares subject to divestiture to be sold to certain local governments.

 

An international arbitration panel (the “Panel”) was appointed to resolve these claims and other claims that had arisen in relation to divestment and a hearing was held in Jakarta in December 2008. On March 31, 2009, the Panel issued its final award and decision on the matter. In its decision, the Panel determined that PTNNT's foreign shareholders had not complied with the divestiture procedure required by the Contract of Work in 2006 and 2007, but the Panel ruled that the Indonesian government was not entitled to immediately terminate the Contract of Work and rejected the Indonesian government's claim for damages. The Panel granted PTNNT 180 days from the date of notification of the final award to effect transfer of the 2006 3% interest and the 2007 7% interest in PTNNT to the local governments or their respective nominees. The Panel also applied a 180-day cure period to the 2008 7% interest, requiring that PTNNT effect the offer of the 2008 7% interest to the Indonesian government or its nominee within such 180-day period, and ensure the transfer of such shares if, after agreement on the transfer price, the Indonesian government invoked its right of first refusal under the Contract of Work. On July 14, 2009, the Company reached agreement with the Indonesian government on the price of the 2008 7% interest and the 2009 7% interest. PTNNT effected the reoffer of the 2008 7% interest and the 2009 7% interest to the Indonesian government at this newly agreed price. In November and December 2009, sale agreements were concluded pursuant to which the 2006, 2007 and 2008 shares were transferred to PT Multi Daerah Bersaing (“PTMDB”), the nominee of the local governments, and the 2009 shares were transferred to PTMDB in February 2010, resulting in PTMDB owning a 24% interest in PTNNT.

 

On December 17, 2010, the Ministry of Energy & Mineral Resources, acting on behalf of the Indonesian government, accepted the offer to acquire the final 7% interest in PTNNT. The government entity that will purchase the shares has not yet been designated, but the purchase and sale of this final 7% stake offered to complete the divestiture process is anticipated to close in the first half of 2011. Further disputes may arise in regard to the divestiture of the 2010 shares.

 

As part of the negotiation of the sale agreements with PTMDB, the parties executed an operating agreement (the “Operating Agreement”) under which each recognizes the rights of the Company and Sumitomo to apply their operating standards to the management of PTNNT's operations, including standards for safety, environmental stewardship and community responsibility. The Operating Agreement became effective upon the completion of the sale of the 2009 shares in February 2010 and will continue for so long as the Company and Sumitomo own more shares of PTNNT than PTMDB. If the Operating Agreement terminates, then the Company may lose control over the applicable operating standards for Batu Hijau and will be at risk for operations conducted in a manner that either detracts from value or results in safety, environmental or social standards below those adhered to by the Company and Sumitomo.

 

In the event of any future disputes under the Contract of Work or Operating Agreement, there can be no assurance that the Company would prevail in any such dispute and any termination of such contracts could result in substantial diminution in the value of the Company's interests in PTNNT.

 

Additionally, in February 2010, PTNNT was notified by the tax authorities of the Indonesian government, that PTNNT may be obligated to pay value added taxes on certain goods imported after the year 2000. PTNNT believes that pursuant to the terms of its Contract of Work, it is only required to pay value added taxes on these types of goods imported after February 28, 2010.   The Company and PTNNT are working cooperatively with the applicable government authorities to resolve this matter. 

Effective as of January 1, 2011, the local government in the region where the Batu Hijau mine is located purported to commence the enforcement of regulations that purport to require PTNNT to pay additional taxes based on revenue and the value of PTNNT's contracts. In addition, the regulations purport to require PTNNT to obtain certain export-related documents from the regional government for purposes of shipping copper concentrate. PTNNT is required to and has obtained all export related-documents in compliance with the laws and regulations of the central government. PTNNT believes that the new regional regulations are not enforceable as they expressly contradict higher level Indonesian laws that set out the permissible taxes that can be imposed by a regional government and all effective export requirements. PTNNT's position is supported by Indonesia's Ministry of Energy & Mineral Resources, Ministry of Trade, and the provincial government. To date, PTNNT has not been forced to comply with these new contradictory regional regulations. On February 4, 2011, PTNNT filed legal proceedings seeking to have the regulations declared null and void because they conflict with the laws of Indonesia. Further disputes with the local government could arise in relation to these regulations. PTNNT intends to vigorously defend its position in this dispute.

PT Pukuafu Indah Litigation

In October 2009, PTPI filed a lawsuit in the Central Jakarta District Court against PTNNT and the Indonesian government seeking to cancel the March 2009 arbitration award pertaining to the manner in which divestiture of shares in PTNNT should proceed (refer to the discussion of PTNNT above for the arbitration results). On October 11, 2010, the District Court ruled in favor of PTNNT and the Indonesian government finding, among other things, that PTPI lacks standing to contest the validity of the arbitration award. PTPI has filed a notice of appeal of the court's ruling.

Subsequent to its initial claim, PTPI filed numerous additional lawsuits, two of which have been withdrawn, against Newmont Indonesia Limited (“NIL”) and Nusa Tenggara Mining Corporation (“NTMC”), a subsidiary of Sumitomo, in the South Jakarta District Court. Fundamentally, the cases all relate to PTPI's contention that it owns, or has rights to own, the shares in PTNNT that NIL and NTMC have or will divest to fulfill the requirements of the PTNNT Contract of Work and the March 2009 arbitration award. PTPI also makes various other allegations, including alleged rights in or to the Company's or Sumitomo's non-divestiture shares in PTNNT, and PTPI asserts claims for significant damages allegedly arising from NIL's and NTMC's unlawful acts in transferring the divestiture shares to a third party. On November 30, 2010, the South Jakarta District Court rendered a decision in favor of PTPI in one of the cases which included an order that NIL/NTMC transfer 31% of PTNNT shares to PTPI and pay PTPI $26 in damages and certain monetary penalties. The order is not final and binding until the appeal process is completed. NIL and NTMC appealed the decision. In January 2010, PTPI also filed a lawsuit against PTNNT's President Director, Mr. Martiono Hadianto, alleging wrongful acts associated with the arbitration, including failure to properly share certain information. The South Jakarta District Court issued a decision partially in favor of PTPI against the PTNNT President Director, requiring the production of arbitration documents. The PTNNT President Director has appealed the decision which is non binding until the appeal process is completed. Despite the rulings, Newmont, Sumitomo and PTNNT's management believe that all of PTPI's claims in these cases are without merit and constitute a material breach of a written release agreement executed by PTPI in 2009, in which it and its shareholders committed to cease prosecution of all then-pending lawsuits and not to initiate new proceedings, in conjunction with Newmont's provision of financing to PTPI in late 2009.

In August 2010, NIL and NVL USA Limited (“NVL”) commenced an arbitration against PTPI in the Singapore International Arbitration Centre, as provided in relevant agreements, seeking declarations that PTPI has violated the release agreement by failing to dismiss its Indonesian lawsuits, that PTPI is in breach of the November 2009 loan facility and related agreements, and that NIL and NVL are entitled to damages arising from PTPI's and its shareholders' conduct.

On October 1, 2010, NIL and NVL requested, based upon the release agreement, that the arbitral tribunal issue an interim order requiring PTPI and its shareholders to discontinue the various Indonesian court proceedings and refrain from bringing additional lawsuits. On October 15, 2010, the tribunal issued an order granting NIL and NVL's request. The order of the tribunal restrains PTPI and its agents from “proceeding with or continuing with or assisting or participating in the prosecution of the Indonesian [s]uits” and from commencing additional proceedings relating to the same subject matter as the Indonesian lawsuits. NIL and NVL are in the process of enforcing the interim award in Indonesian courts but it is not known the extent to which the Indonesian courts will enforce the order or whether PTPI and its shareholders will, in any event, abide by the order.

The Company intends to continue vigorously defending the PTPI lawsuits and pursuing its claims against PTPI in arbitration.

Other Commitments and Contingencies

 

Tax contingencies are provided for in accordance with ASC income tax guidance (see Note 10).

 

In a 1993 asset exchange, a wholly-owned subsidiary transferred a coal lease under which the subsidiary had collected advance royalty payments totaling $484. From 1994 to 2018, remaining advance payments under the lease to the transferee total $390. In the event of title failure as stated in the lease, this subsidiary has a primary obligation to refund previously collected payments and has a secondary obligation to refund any of the $390 collected by the transferee, if the transferee fails to meet its refund obligation. The subsidiary has title insurance on the leased coal deposits of $240 covering the secondary obligation. The Company and the subsidiary regard the circumstances entitling the lessee to a refund as remote.

 

The Company has minimum royalty obligations on one of its producing mines in Nevada for the life of the mine. Amounts paid as a minimum royalty (where production royalties are less than the minimum obligation) in any year are recoverable in future years when the minimum royalty obligation is exceeded. Although the minimum royalty requirement may not be met in a particular year, the Company expects that over the mine life, gold production will be sufficient to meet the minimum royalty requirements. Minimum royalty payments payable are $28 in 2011 through 2015 and $251 thereafter.

 

As part of its ongoing business and operations, the Company and its affiliates are required to provide surety bonds, bank letters of credit and bank guarantees as financial support for various purposes, including environmental reclamation, exploration permitting, workers compensation programs and other general corporate purposes. At December 31, 2010 and December 31, 2009, there were $1,191 and $1,073, respectively, of outstanding letters of credit, surety bonds and bank guarantees. The surety bonds, letters of credit and bank guarantees reflect fair value as a condition of their underlying purpose and are subject to fees competitively determined in the market place. The obligations associated with these instruments are generally related to performance requirements that the Company addresses through its ongoing operations. As the specific requirements are met, the beneficiary of the associated instrument cancels and/or returns the instrument to the issuing entity. Certain of these instruments are associated with operating sites with long-lived assets and will remain outstanding until closure. Generally, bonding requirements associated with environmental regulation are becoming more restrictive. However, the Company, believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements, through existing or alternative means, as they arise.

 

Newmont is from time to time involved in various legal proceedings related to its business. Except in the above-described proceedings, management does not believe that adverse decisions in any pending or threatened proceeding or that amounts that may be required to be paid by reason thereof will have a material adverse effect on the Company's financial condition or results of operations.

 

Unaudited Supplementary Data
SUPPLEMENTARY DATA
NOTE 32    UNAUDITED SUPPLEMENTARY DATA
               
Quarterly Data            
               
  The following is a summary of selected quarterly financial information (unaudited):
               
    2010
    Three Months Ended
    March 31 June 30  September 30 December 31
Sales $2,242 $2,153 $2,597 $2,548
(1) $1,135 $1,062 $1,447 $1,402
(2) $546 $382 $537 $840
Income (loss) from discontinued operations(2)  -  -  -  (28)
(2) $546 $382 $537 $812
Income per common share            
 Basic:            
  Continuing operations $1.11 $0.78 $1.09 $1.71
  Discontinued operations  -  -  -  (0.06)
    $1.11 $0.78 $1.09 $1.65
 Diluted:            
  Continuing operations $1.11 $0.77 $1.07 $1.67
  Discontinued operations  -  -  -  (0.06)
    $1.11 $0.77 $1.07 $1.61
Weighted average common shares (millions)            
  Basic  491  492  493  493
  Diluted  493  499  502  504
Cash dividends declared per common share   $0.10 $0.10 $0.15 $0.15
Closing price of common stock   $50.93 $61.74 $62.81 $61.43
               
    2009
    Three Months Ended
    March 31 June 30  September 30 December 31
Sales $1,536 $1,602 $2,049 $2,518
(1) $606 $726 $1,083 $1,417
(2) $189 $171 $388 $560
Income (loss) from discontinued operations(2)  -  (9)  -  (2)
(2) $189 $162 $388 $558
Income per common share            
 Basic:            
  Continuing operations $0.40 $0.35 $0.79 $1.14
  Discontinued operations  -  (0.02)  -  -
    $0.40 $0.33 $0.79 $1.14
 Diluted:            
  Continuing operations $0.40 $0.35 $0.79 $1.13
  Discontinued operations  -  (0.02)  -  -
    $0.40 $0.33 $0.79 $1.13
Weighted average common shares (millions)            
  Basic  472  490  490  491
  Diluted  473  491  491  493
Cash dividends declared per common share   $0.10 $0.10 $0.10 $0.10
Closing price of common stock   $44.76 $40.87 $44.02 $47.31

 

(1)       Sales less Costs applicable to sales, Amortization and Reclamation and remediation.

(2)       Attributable to Newmont stockholders.

 

Significant after-tax items were as follows:

Fourth quarter 2010: (i) a $264 ($0.54 per share, basic) income tax benefit from internal restructuring;

Third quarter 2010: none;

 

Second quarter 2010: (i) a $7 ($0.01 per share, basic) net gain on asset sales;

 

First quarter 2010: (i) a $127 ($0.26 per share, basic) income tax benefit from internal restructuring; (ii) a $25 ($0.05 per share, basic) net gain on asset sales and (iii) a $13 ($0.03 per share, basic) PTNNT community contribution;

 

Fourth quarter 2009: (i) a $15 ($0.03 per share, basic) loss related to Boddington contingent consideration and (ii) a $14 ($0.03 per share, basic) gain on asset sales;

 

Third quarter 2009: none;

 

Second quarter 2009: (i) a $42 ($0.08 per share, basic) loss related to Boddington acquisition costs;

 

First quarter 2009: (i) a $9 ($0.02 per share, basic) loss related to workforce reduction costs; (ii) a $5 ($0.01 per share, basic) loss related to Boddington acquisition costs and (iii) a $5 ($0.01 per share, basic) loss on the impairment of marketable equity securities and other assets.

 

Subsequent Events
SUBSEQUENT EVENTS

NOTE 33    SUBSEQUENT EVENTS

 

On February 3, 2011, Newmont and Fronteer Gold Inc. (“Fronteer”) announced that they had entered into an agreement under which Newmont will acquire all of the outstanding common shares of Fronteer by way of a Plan of Arrangement (“Arrangement”). Fronteer owns, among other assets, the exploration stage Long Canyon project, which is located approximately one hundred miles from the Company's existing infrastructure in Nevada and provides the potential for significant development and operating synergies. Under the Arrangement, shareholders of Fronteer will receive C$14.00 in cash and one common share in Pilot Gold, which will retain certain exploration assets of Fronteer, for each common share of Fronteer. The transaction is expected to close in the second quarter of 2011 for approximately C$2,300. Provided for in the Arrangement is a break fee of C$85 if the transaction is not completed in certain specified circumstances.

Summary of Significant Accounting Policies (Policies)
Year Ended
Dec. 31, 2010
Summary of Significant Accounting Policies [Abstract]
 
Use Of Estimates
Use of Estimates The Company’s Consolidated Financial Statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”). The preparation of the Company’s Consolidated Financial Statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to mineral reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of-production amortization calculations; environmental, reclamation and closure obligations; estimates of recoverable gold and other minerals in stockpile and leach pad inventories; estimates of fair value for certain reporting units and asset impairments (including impairments of goodwill, long-lived assets and investments); write-downs of inventory, stockpiles and ore on leach pads to net realizable value; post-employment, post-retirement and other employee benefit liabilities; valuation allowances for deferred tax assets; reserves for contingencies and litigation; and the fair value and accounting treatment of financial instruments including marketable securities and derivative instruments. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates under different assumptions or conditions. 
Principles of Consolidation
Principles of Consolidation The Consolidated Financial Statements include the accounts of Newmont Mining Corporation and more-than-50%-owned subsidiaries that it controls and entities over which control is achieved through means other than voting rights. The Company also includes its pro-rata share of assets, liabilities and operations for unincorporated joint ventures in which it has an interest. All significant intercompany balances and transactions have been eliminated. The functional currency for the majority of the Company’s operations, including the Australian operations, is the U.S. dollar. The Company follows FASB Accounting Standards Codification (“ASC”) guidance for identification and reporting of entities over which control is achieved through means other than voting rights. The guidance defines such entities as Variable Interest Entities (“VIEs”). Newmont identified the Nusa Tenggara Partnership (“NTP”), a partnership between Newmont and an affiliate of Sumitomo, that owns a 56% interest in PT Newmont Nusa Tenggara (“PTNNT” or “Batu Hijau”), as a VIE due to certain capital structures and contractual relationships. Newmont also identified PT Pukuafu Indah (“PTPI”) and PT Indonesia Masbaga Investama (“PTIMI”), unrelated noncontrolling partners of PTNNT, as VIEs. Newmont entered into transactions with PTPI and PTIMI, whereby the Company agreed to advance certain funds in exchange for a pledge of the noncontrolling partners’ combined 20% share of PTNNT dividends, net of withholding tax. The agreements also provide Newmont with certain voting rights and obligations related to the noncontrolling partners’ combined 20% share of PTNNT and commitments from PTPI and PTIMI to support the application of Newmont’s standards to the operation of the Batu Hijau mine. The Company has determined itself to be the primary beneficiary of these entities and controls the operations of Batu Hijau, and therefore consolidates PTNNT in the Company’s financial statements. 
Cash and Cash Equivalents
Investments
Stockpiles, Ore on Leach Pads and Inventories
Property,Plant and Mine Development
Asset Impairment
Revenue Recognition
Income and Mining Taxes
Reclamation and Remediation Costs
Reclamation and Remediation Costs Reclamation obligations are recognized when incurred and recorded as liabilities at fair value. The liability is accreted over time through periodic charges to earnings. In addition, the asset retirement cost is capitalized as part of the asset’s carrying value and amortized over the life of the related asset. Reclamation costs are periodically adjusted to reflect changes in the estimated present value resulting from the passage of time and revisions to the estimates of either the timing or amount of the reclamation and abandonment costs. The reclamation obligation is based on when spending for an existing environmental disturbance will occur. The Company reviews, on an annual basis, unless otherwise deemed necessary, the reclamation obligation at each mine site in accordance with ASC guidance for accounting reclamation obligations. Future remediation costs for inactive mines are accrued based on management’s best estimate at the end of each period of the costs expected to be incurred at a site. Such cost estimates include, where applicable, ongoing care, maintenance and monitoring costs. Changes in estimates at inactive mines are reflected in earnings in the period an estimate is revised.  
Foreign Currency
Derivative Instruments
Net Income per Common Share
Comprehensive Income Policy
Comprehensive Income In addition to Net income, Comprehensive income (loss) includes all changes in equity during a period, such as adjustments to minimum pension liabilities, foreign currency translation adjustments, the effective portion of changes in fair value of derivative instruments that qualify as cash flow hedges and cumulative unrecognized changes in fair value of marketable securities available-for-sale or other investments, except those resulting from investments by and distributions to owners. 
Reclassifications
Reclassifications Certain amounts in prior years have been reclassified to conform to the 2010 presentation. The Company reclassified certain income based state and provincial taxes from Costs applicable to sales to Income and mining tax expense, and reclassified reclamation accretion and estimate revisions for non-operating sites from Other expense, net to Reclamation and remediation. 
Recently Adopted Accounting Pronouncements
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements Business Combinations In December 2010, the ASC guidance for business combinations was updated to clarify existing guidance which requires a public entity to disclose pro forma revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual period only. The update also expands the supplemental pro forma disclosures required to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. The updated guidance is effective for the Company’s fiscal year beginning January 1, 2011. The Company is evaluating the potential impact of adopting this guidance on the Company’s consolidated financial position, results of operations and cash flows. Fair Value Accounting In January 2010, the ASC guidance for fair value measurements and disclosure was updated to require enhanced detail in the level 3 reconciliation. The updated guidance is effective for the Company’s fiscal year beginning January 1, 2011. The Company expects minimal impact from adopting this guidance.  

Cash and Cash Equivalents

 

Cash and cash equivalents consist of all cash balances and highly liquid investments with an original maturity of three months or less. Because of the short maturity of these investments, the carrying amounts approximate their fair value. Cash and cash equivalents are invested in United States Treasury securities and money market securities. Restricted cash is excluded from cash and cash equivalents and is included in other current and long-term assets.

Investments

 

Management determines the appropriate classification of its investments in equity securities at the time of purchase and reevaluates such determinations at each reporting date. Investments in incorporated entities in which the Company's ownership is greater than 20% and less than 50%, or which the Company does not control through majority ownership or means other than voting rights, are accounted for by the equity method and are included in long-term assets. The Company accounts for its equity security investments as available for sale securities in accordance with ASC guidance on accounting for certain investments in debt and equity securities. The Company periodically evaluates whether declines in fair values of its investments below the Company's carrying value are other-than-temporary in accordance with guidance for the meaning of other-than-temporary impairment and its application to certain investments. The Company's policy is to generally treat a decline in the investment's quoted market value that has lasted continuously for more than six months as an other-than-temporary decline in value. The Company also monitors its investments for events or changes in circumstances that have occurred that may have a significant adverse effect on the fair value of the investment and evaluates qualitative and quantitative factors regarding the severity and duration of the unrealized loss and the Company's ability to hold the investment until a forecasted recovery occurs to determine if the decline in value of an investment is other-than-temporary. Declines in fair value below the Company's carrying value deemed to be other-than-temporary are charged to earnings. Additional information concerning the Company's equity method and security investments is included in Note 18.

Stockpiles, Ore on Leach Pads and Inventories

 

As described below, costs that are incurred in or benefit the productive process are accumulated as stockpiles, ore on leach pads and inventories. Stockpiles, ore on leach pads and inventories are carried at the lower of average cost or net realizable value. Net realizable value represents the estimated future sales price of the product based on current and long-term metals prices, less the estimated costs to complete production and bring the product to sale. Write-downs of stockpiles, ore on leach pads and inventories, resulting from net realizable value impairments, are reported as a component of Costs applicable to sales. The current portion of stockpiles, ore on leach pads and inventories is determined based on the expected amounts to be processed within the next 12 months. Stockpiles, ore on leach pads and inventories not expected to be processed within the next 12 months are classified as long-term. The major classifications are as follows:

 

Stockpiles

 

Stockpiles represent ore that has been extracted from the mine and is available for further processing. Stockpiles are measured by estimating the number of tons added and removed from the stockpile, the number of contained ounces or pounds (based on assay data) and the estimated metallurgical recovery rates (based on the expected processing method). Stockpile ore tonnages are verified by periodic surveys. Costs are allocated to stockpiles based on relative values of material stockpiled and processed using current mining costs incurred up to the point of stockpiling the ore, including applicable overhead and amortization relating to mining operations, and removed at each stockpile's average cost per recoverable unit.

 

Ore on Leach Pads

 

The recovery of gold from certain gold oxide ores is achieved through the heap leaching process. Under this method, oxide ore is placed on leach pads where it is treated with a chemical solution, which dissolves the gold contained in the ore. The resulting gold-bearing solution is further processed in a plant where the gold is recovered. Costs are added to ore on leach pads based on current mining costs, including applicable amortization relating to mining operations. Costs are removed from ore on leach pads as ounces are recovered based on the average cost per estimated recoverable ounce of gold on the leach pad.

 

The estimates of recoverable gold on the leach pads are calculated from the quantities of ore placed on the leach pads (measured tons added to the leach pads), the grade of ore placed on the leach pads (based on assay data) and a recovery percentage (based on ore type). In general, leach pads recover between 50% and 95% of the recoverable ounces in the first year of leaching, declining each year thereafter until the leaching process is complete.

 

Although the quantities of recoverable gold placed on the leach pads are reconciled by comparing the grades of ore placed on pads to the quantities of gold actually recovered (metallurgical balancing), the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As a result, the metallurgical balancing process is constantly monitored and estimates are refined based on actual results over time. Historically, the Company's operating results have not been materially impacted by variations between the estimated and actual recoverable quantities of gold on its leach pads. Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis.

 

In-process Inventory

 

In-process inventories represent materials that are currently in the process of being converted to a saleable product. Conversion processes vary depending on the nature of the ore and the specific processing facility, but include mill in-circuit, leach in-circuit, flotation and column cells, and carbon in-pulp inventories. In-process material is measured based on assays of the material fed into the process and the projected recoveries of the respective plants. In-process inventories are valued at the average cost of the material fed into the process attributable to the source material coming from the mines, stockpiles and/or leach pads plus the in-process conversion costs, including applicable amortization relating to the process facilities incurred to that point in the process.

 

Precious Metals Inventory

 

Precious metals inventories include gold doré and/or gold bullion. Precious metals that result from the Company's mining and processing activities are valued at the average cost of the respective in-process inventories incurred prior to the refining process, plus applicable refining costs.

 

Concentrate Inventory

 

Concentrate inventories represent copper and gold concentrate available for shipment. The Company values concentrate inventory at the average cost, including an allocable portion of support costs and amortization. Costs are added and removed to the concentrate inventory based on tons of concentrate and are valued at the lower of average cost or net realizable value.

 

Materials and Supplies

 

Materials and supplies are valued at the lower of average cost or net realizable value. Cost includes applicable taxes and freight.

Property, Plant and Mine Development

 

Facilities and equipment

 

Expenditures for new facilities or equipment and expenditures that extend the useful lives of existing facilities or equipment are capitalized and recorded at cost. The facilities and equipment are amortized using the straight-line method at rates sufficient to amortize such costs over the estimated productive lives, which do not exceed the related estimated mine lives, of such facilities based on proven and probable reserves.

 

Mine Development

 

Mine development costs include engineering and metallurgical studies, drilling and other related costs to delineate an ore body, the removal of overburden to initially expose an ore body at open pit surface mines and the building of access ways, shafts, lateral access, drifts, ramps and other infrastructure at underground mines. Costs incurred before mineralization are classified as proven and probable reserves are expensed and classified as Exploration or Advanced projects, research and development expense. Capitalization of mine development project costs, that meet the definition of an asset, begins once mineralization is classified as proven and probable reserves.

 

Drilling and related costs are capitalized for an ore body where proven and probable reserves exist and the activities are directed at obtaining additional information on the ore body or converting non-reserve mineralization to proven and probable reserves and the benefit is expected to be realized over a period beyond one year. All other drilling and related costs are expensed as incurred. Drilling costs incurred during the production phase for operational ore control are allocated to inventory costs and then included as a component of Costs applicable to sales.

 

The cost of removing overburden and waste materials to access the ore body at an open pit mine prior to the production phase are referred to as “pre-stripping costs.” Pre-stripping costs are capitalized during the development of an open pit mine. Where multiple open pits exist at a mining complex utilizing common processing facilities, pre-stripping costs are capitalized at each pit. The removal, production, and sale of de minimis saleable materials may occur during development and are recorded as Other income, net of incremental mining and processing costs.

 

The production phase of an open pit mine commences when saleable minerals, beyond a de minimis amount, are produced. Stripping costs incurred during the production phase of a mine are variable production costs that are included as a component of inventory to be recognized in Costs applicable to sales in the same period as the revenue from the sale of inventory. The Company's definition of a mine and the mine's production phase may differ from that of other companies in the mining industry resulting in incomparable allocations of stripping costs to deferred mine development and production costs. Other mining companies may expense pre-stripping costs associated with subsequent pits within a mining complex.

 

Mine development costs are amortized using the units-of-production (“UOP”) method based on estimated recoverable ounces or pounds in proven and probable reserves. To the extent that these costs benefit an entire ore body, they are amortized over the estimated life of the ore body. Costs incurred to access specific ore blocks or areas that only provide benefit over the life of that area are amortized over the estimated life of that specific ore block or area.

 

Mineral Interests

 

Mineral interests include acquired interests in production, development and exploration stage properties. The mineral interests are capitalized at their fair value at the acquisition date, either as an individual asset purchase or as part of a business combination.

 

The value of such assets is primarily driven by the nature and amount of mineralized material believed to be contained in such properties. Production stage mineral interests represent interests in operating properties that contain proven and probable reserves. Development stage mineral interests represent interests in properties under development that contain proven and probable reserves. Exploration stage mineral interests represent interests in properties that are believed to potentially contain mineralized material consisting of (i) mineralized material such as inferred material within pits; measured, indicated and inferred material with insufficient drill spacing to qualify as proven and probable reserves; and inferred material in close proximity to proven and probable reserves; (ii) around-mine exploration potential such as inferred material not immediately adjacent to existing reserves and mineralization, but located within the immediate mine area; (iii) other mine-related exploration potential that is not part of measured, indicated or inferred material and is comprised mainly of material outside of the immediate mine area; (iv) greenfields exploration potential that is not associated with any other production, development or exploration stage property, as described above; or (v) any acquired right to explore or extract a potential mineral deposit. The Company's mineral rights generally are enforceable regardless of whether proven and probable reserves have been established. In certain limited situations, the nature of a mineral right changes from an exploration right to a mining right upon the establishment of proven and probable reserves. The Company has the ability and intent to renew mineral interests where the existing term is not sufficient to recover all identified and valued proven and probable reserves and/or undeveloped mineralized material.

Asset Impairment

 

The Company reviews and evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. An impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets, including goodwill, if any. An impairment loss is measured and recorded based on discounted estimated future cash flows. Future cash flows are estimated based on quantities of recoverable minerals, expected gold and other commodity prices (considering current and historical prices, trends and related factors), production levels, operating costs, capital requirements and reclamation costs, all based on life-of-mine plans. Existing proven and probable reserves and value beyond proven and probable reserves, including mineralization that is not part of the measured, indicated or inferred resource base, are included when determining the fair value of mine site reporting units at acquisition and, subsequently, in determining whether the assets are impaired. The term “recoverable minerals” refers to the estimated amount of gold or other commodities that will be obtained after taking into account losses during ore processing and treatment. Estimates of recoverable minerals from such exploration stage mineral interests are risk adjusted based on management's relative confidence in such materials. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. The Company's estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold and other commodity prices, production levels and costs and capital are each subject to significant risks and uncertainties.

Revenue Recognition

 

Revenue is recognized, net of treatment and refining charges, from a sale when persuasive evidence of an arrangement exists, the price is determinable, the product has been delivered, the title has been transferred to the customer and collection of the sales price is reasonably assured. Revenues from by-product sales are credited to Costs applicable to sales as a by-product credit.

 

Concentrate sales are initially recorded based on 100% of the provisional sales prices. Until final settlement occurs, adjustments to the provisional sales prices are made to take into account the mark-to-market changes based on the forward prices for the estimated month of settlement. For changes in metal quantities upon receipt of new information and assay, the provisional sales quantities are adjusted as well. The principal risks associated with recognition of sales on a provisional basis include metal price fluctuations between the date initially recorded and the date of final settlement. If a significant decline in metal prices occurs between the provisional pricing date and the final settlement date, it is reasonably possible that the Company could be required to return a portion of the sales proceeds received based on the provisional invoice.

 

The Company's sales based on a provisional price contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the concentrates at the forward exchange price at the time of sale. The embedded derivative, which does not qualify for hedge accounting, is marked to market through earnings each period prior to final settlement.

Income and Mining Taxes

 

The Company accounts for income taxes using the liability method, recognizing certain temporary differences between the financial reporting basis of the Company's liabilities and assets and the related income tax basis for such liabilities and assets. This method generates either a net deferred income tax liability or asset for the Company, as measured by the statutory tax rates in effect. The Company derives its deferred income tax charge or benefit by recording the change in either the net deferred income tax liability or asset balance for the year. Mining taxes represent state and provincial taxes levied on mining operations and are classified as income taxes; as such taxes are based on a percentage of mining profits. With respect to the earnings that the Company derives from the operations of its consolidated subsidiaries, in those situations where the earnings are indefinitely reinvested, no deferred taxes have been provided on the unremitted earnings (including the excess of the carrying value of the net equity of such entities for financial reporting purposes over the tax basis of such equity) of these consolidated companies.

 

The Company's deferred income tax assets include certain future tax benefits. The Company records a valuation allowance against any portion of those deferred income tax assets when it believes, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income tax asset will not be realized.

 

The Company's operations involve dealing with uncertainties and judgments in the application of complex tax regulations in multiple jurisdictions. The final taxes paid are dependent upon many factors, including negotiations with taxing authorities in various jurisdictions and resolution of disputes arising from federal, state, and international tax audits. The Company recognizes potential liabilities and records tax liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on its estimate of whether, and the extent to which, additional taxes will be due. The Company adjusts these reserves in light of changing facts and circumstances; however, due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the Company's current estimate of the tax liabilities. If the Company's estimate of tax liabilities proves to be less than the ultimate assessment, an additional charge to expense would result. If the estimate of tax liabilities proves to be greater than the ultimate assessment, a tax benefit would result. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in Income and mining tax expense.

Foreign Currency

 

The functional currency for the majority of the Company's operations, including the Australian operations, is the U.S. dollar. All monetary assets and liabilities where the functional currency is the U.S. dollar are translated at current exchange rates and the resulting adjustments are included in Other income, net. All monetary assets and liabilities recorded in functional currencies other than U.S. dollars are translated at current exchange rates and the resulting adjustments are charged or credited directly to Accumulated other comprehensive income in Equity. Revenues and expenses in foreign currencies are translated at the weighted-average exchange rates for the period.

Derivative Instruments

 

Newmont has fixed forward contracts designated as cash flow hedges in place to hedge against changes in foreign exchanges rates and diesel prices and fixed to floating interest rate swap contracts designated as fair value hedges to provide balance to the Company's mix of fixed and floating rate debt. The fair value of derivative contracts qualifying as cash flow hedges are reflected as assets or liabilities in the balance sheet. To the extent these hedges are effective in offsetting forecasted cash flows from production costs (the “effective portion”), changes in fair value are deferred in Accumulated other comprehensive income. Amounts deferred in Accumulated other comprehensive income are reclassified to Costs applicable to sales, as applicable, when the hedged transaction has occurred. The ineffective portion of the change in the fair value of the derivative is recorded in Other income, net in each period. Cash transactions related to the Company's derivative contracts accounted for as hedges are classified in the same category as the item being hedged in the statement of cash flows.

 

When derivative contracts qualifying as cash flow hedges are settled, accelerated or restructured before the maturity date of the contracts, the related amount in Accumulated other comprehensive income at the settlement date is deferred and reclassified to earnings, as applicable, when the originally designated hedged transaction impacts earnings.

 

The fair value of derivative contracts qualifying as fair value hedges are reflected as assets or liabilities in the balance sheet. Changes in fair value are recorded in income in each period, consistent with recording changes to the mark-to-market value of the underlying hedged asset or liability in income. Changes in the mark-to-market value of the effective portion of interest rate swaps utilized by the Company to swap a portion of its fixed rate interest rate risk to floating rate risk are recognized as a component of Interest expense, net.

 

Newmont assesses the effectiveness of the derivative contracts periodically using either regression analysis or the dollar offset approach, both retrospectively and prospectively, to determine whether the hedging instruments have been highly effective in offsetting changes in the fair value of the hedged items. The Company will also assess periodically whether the hedging instruments are expected to be highly effective in the future. If a hedging instrument is not expected to be highly effective, the Company will stop hedge accounting prospectively. In those instances, the gains or losses remain in Accumulated other comprehensive income until the hedged item affects earnings.

 

The ASC guidance for derivatives and hedging was updated for enhanced disclosures about how and why an entity uses derivative instruments, how derivative instruments and the related hedged items are accounted for, and how derivative instruments and the related hedged items affect an entity's financial position, financial performance and cash flows. The Company adopted the updated guidance on January 1, 2009.

Net Income per Common Share

 

Basic and diluted income per share are presented for Net income attributable to Newmont stockholders and for Income from continuing operations attributable to Newmont stockholders. Basic income per share is computed by dividing income available to common shareholders by the weighted-average number of outstanding common shares for the period, including the exchangeable shares (see Notes 14 and 23). Diluted income per share reflects the potential dilution that could occur if securities or other contracts that may require the issuance of common shares in the future were converted. Diluted income per share is computed by increasing the weighted-average number of outstanding common shares to include the additional common shares that would be outstanding after conversion and adjusting net income for changes that would result from the conversion. Only those securities or other contracts that result in a reduction in earnings per share are included in the calculation.

Recently Adopted Accounting Pronouncements

 

Variable Interest Entities

In June 2009, the ASC guidance for consolidation accounting was updated to require an entity to perform a qualitative analysis to determine whether the enterprise's variable interest gives it a controlling financial interest in a VIE. This qualitative analysis identifies the primary beneficiary of a VIE as the entity that has both of the following characteristics: (i) the power to direct the activities of a VIE that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses or receive benefits from the entity that could potentially be significant to the VIE. The updated guidance also requires ongoing reassessments of the primary beneficiary of a VIE. Adoption of the updated guidance, effective for the Company's fiscal year beginning January 1, 2010, had no impact on the Company's consolidated financial position, results of operations or cash flows.

Fair Value Accounting

In January 2010, ASC guidance for fair value measurements and disclosure was updated to require additional disclosures related to transfers in and out of level 1 and 2 fair value measurements. The guidance was amended to clarify the level of disaggregation required for assets and liabilities and the disclosures required for inputs and valuation techniques used to measure the fair value of assets and liabilities that fall in either level 2 or level 3. The updated guidance was effective for the Company's fiscal year beginning January 1, 2010. The adoption had no impact on the Company's consolidated financial position, results of operations or cash flows. Refer to Note 16 for further details regarding the Company's assets and liabilities measured at fair value.

Segment Information (Tables)
     Costs    Advanced         
     Applicable to    Projects and Pre-Tax Total Capital
   Sales Sales Amortization Exploration Income Assets Expenditures(1)
Year Ended December 31, 2010                   
Nevada$2,111 $974 $271 $85 $738 $3,387 $298
La Herradura 217  73  19  6  118  216  41
Hope Bay -  -  13  98  (111)  2,152  115
Other North America -  -  1  1  (1)  112  -
 North America 2,328  1,047  304  190  744  5,867  454
                       
Yanacocha 1,778  630  162  24  893  2,682  167
Other South America -  -  1  38  (34)  292  134
 South America 1,778  630  163  62  859  2,974  301
                       
Boddington:                    
 Gold 834  400  113            
 Copper 162  93  25            
  Total Boddington 996  493  138  6  304  4,323  146
Batu Hijau:                    
 Gold 776  155  42            
 Copper 1,686  337  90            
  Total Batu Hijau 2,462  492  132  3  1,736  3,398  67
Other Australia/New Zealand 1,321  585  108  31  575  1,025  176
Other Asia Pacific -  -  2  19  (14)  535  17
 Asia Pacific 4,779  1,570  380  59  2,601  9,281  406
                       
Ahafo 655  237  78  24  298  1,055  109
Other Africa -  -  -  9  (10)  291  70
 Africa 655  237  78  33  288  1,346  179
                       
Corporate and Other -  -  20  90  (495)  6,195  34
Consolidated$9,540 $3,484 $945 $434 $3,997 $25,663 $1,374
                       
 (1)Accrual basis includes a decrease in accrued capital expenditures of $28; consolidated capital expenditures on a cash basis were $1402.

      Costs    Advanced         
      Applicable to    Projects and Pre-Tax Total Capital
   Sales Sales Amortization Exploration Income Assets Expenditures(1)
Year Ended December 31, 2009                    
Nevada$1,943 $1,019 $261 $54 $583 $3,236 $205
La Herradura 113  42  11  3  57  137  54
Hope Bay -  -  12  66  (77)  1,862  5
Other North America -  -  -  2  (7)  55  -
 North America 2,056  1,061  284  125  556  5,290  264
                       
Yanacocha 2,013  642  168  23  1,089  2,472  119
Other South America -  -  -  23  1  32  27
 South America 2,013  642  168  46  1,090  2,504  146
                       
Boddington                    
 Gold 101  45  15            
 Copper 27  16  4            
  Total Boddington 128  61  19  32  (59)  3,975  1,093
Batu Hijau:                    
 Gold 550  118  30            
 Copper 1,292  307  78            
  Total Batu Hijau 1,842  425  108  -  1,242  3,129  44
Other Australia/New Zealand 1,138  577  136  21  374  870  122
Other Asia Pacific -  -  3  12  (50)  256  3
 Asia Pacific 3,108  1,063  266  65  1,507  8,230  1,262
                       
Ahafo 528  242  68  13  178  985  75
Other Africa -  -  -  10  (7)  202  10
 Africa 528  242  68  23  171  1,187  85
                       
Corporate and Other  -  -  20  63  (370)  5,088  16
Consolidated$7,705 $3,008 $806 $322 $2,954 $22,299 $1,773
                       
 (1)Accrual basis includes an increase in accrued capital expenditures of $4; consolidated capital expenditures on a cash basis were $1769.

      Costs    Advanced         
      Applicable to    Projects and Pre-Tax Total Capital
   Sales Sales Amortization Exploration Income Assets(1) Expenditures(2)
Year Ended December 31, 2008                    
Nevada$1,929 $993 $246 $50 $591 $3,215 $299
La Herradura 83  38  8  6  32  90  27
Hope Bay -  -  1  59  (59)  1,621  82
Other North America -  -  -  29  (163)  52  -
 North America 2,012  1,031  255  144  401  4,978  408
                       
Yanacocha 1,613  637  170  28  694  1,902  202
Other South America -  -  -  38  (8)  30  34
 South America 1,613  637  170  66  686  1,932  236
                       
Boddington -  -  -  10  (13)  1,735  815
Batu Hijau:                    
 Gold 261  124  25            
 Copper 752  399  80            
  Total Batu Hijau 1,013  523  105  2  301  2,371  83
Other Australia/New Zealand 1,050  642  122  24  268  819  130
Other Asia Pacific -  -  3  16  (101)  87  2
 Asia Pacific 2,063  1,165  230  52  455  5,012  1,030
                       
Ahafo 435  205  63  18  145  984  109
Other Africa -  -  -  31  (31)  197  2
 Africa 435  205  63  49  114  1,181  111
                       
Corporate and Other  1  -  20  68  (362)  2,624  20
Consolidated$6,124 $3,038 $738 $379 $1,294 $15,727 $1,805
                       
 (1)Corporate and Other includes $73 of Assets held for sale.
 (2)Accrual basis includes a decrease in accrued capital expenditures of $65; consolidated capital expenditures on a cash basis were $1870.
   Years Ended December 31, 
   2010 2009 2008 
Write-down of property, plant and mine development:          
 Nevada   $4 $1 $4 
 Yanacocha    -  1  - 
 Batu Hijau    1  4  10 
 Other Australia/New Zealand    1  1  2 
 Corporate and other    -  -  121 
   $6 $7 $137 
   At December 31, 
   2010 2009 
Stockpiles and ore on leach pads:       
 Nevada $479 $445 
 La Herradura  6  5 
 Yanacocha  496  369 
 Boddington  248  59 
 Batu Hijau  879  834 
 Other Australia/New Zealand  145  121 
 Ahafo  121  72 
   $2,374 $1,905 
Revenues from export and domestic sales were as follows:
            
   Years Ended December 31, 
   2010 2009 2008 
 Europe   $6,209 $5,573 $4,756 
 Japan    1,544  833  464 
 Korea    760  465  231 
 Indonesia    372  440  307 
 Mexico  217  113  83 
 Australia    110  222  170 
 India    -  30  32 
 Other    328  29  81 
   $9,540 $7,705 $6,124 
  At December 31, 
  2010 2009 
Australia   $5,055 $4,683 
United States    3,031  3,059 
Canada    2,088  1,869 
Indonesia    2,109  2,067 
Peru    1,772  1,443 
Ghana    1,231  1,093 
Other    94  70 
  $15,380 $14,284 
Reclamation and Remediation (Tables)
 Balance January 1, 2009 $757  
 Additions, changes in estimates and other    105  
 Liabilities settled    (49)  
 Accretion expense    46  
 Balance December 31, 2009  859  
 Additions, changes in estimates and other    188  
 Liabilities settled    (51)  
 Accretion expense    52  
 Balance December 31, 2010 $1,048  
   Years Ended December 31, 
   2010 2009 2008 
 Reclamation $13 $13 $101 
 Accretion - operating    44  34  31 
 Accretion - non-operating  8  12  10 
   $65 $59 $142 
Advanced Projects, Research and Development (Tables)
Advanced Projects, Research and Development
   Years Ended December 31, 
   2010 2009 2008 
Major projects:          
 Hope Bay $74 $25 $39 
 Subika underground  11  2  - 
 Conga  8  4  4 
 Akyem  5  8  7 
 Boddington  -  25  3 
Other projects:          
 Technical and project services  49  24  23 
 Corporate  29  14  15 
 Other  40  33  75 
   $216 $135 $166 
            
Other Expense, Net (Tables)
Other Expense, Net
NOTE 6    OTHER EXPENSE, NET 
            
   Years Ended December 31, 
   2010 2009 2008 
Community development   $111 $84 $87 
Regional administration    64  55  48 
Western Australia power plant    15  37  18 
World Gold Council dues    13  11  10 
Batu Hijau divestiture    4  12  15 
Revaluation of contingent consideration  2  23  - 
Boddington acquisition costs  -  67  - 
Other    52  69  62 
   $261 $358 $240 
Other Income, Net (Tables)
Other Income, Net
NOTE 7    OTHER INCOME, NET
            
   Years Ended December 31, 
   2010 2009 2008 
Canadian Oil Sands Trust distributions   $55 $26 $110 
Gain on asset sales, net    48  16  42 
Income from developing projects, net  18  4  12 
Gain on sale of investments, net  16  8  30 
European Gold Refinery income  14  14  4 
Interest income    11  16  29 
Impairment of marketable securities  (1)  (6)  (114) 
Foreign currency exchange losses, net    (64)  (1)  (12) 
Other    12  11  22 
   $109 $88 $123 
            
            
Stock Based Compensation (Tables)
   2010 2009 2008 2007 2006
Weighted-average risk-free interest rate   2.5% 2.0% 3.1% 4.6% 4.9%
Dividend yield   0.7% 1.0% 1.0% 1.0% 0.7%
Expected life in years   5  5  5  5  5 
Volatility   38% 36% 30% 32% 34%
 The following table summarizes annual activity for all stock options for each of the three years ended December 31:
                    
   2010 2009 2008
   Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price
Outstanding at beginning of year   6,142,073 $42.65 6,463,004 $42.17 6,234,814 $41.09
Granted   918,343 $55.68 1,157,825 $39.99 1,416,963 $40.77
Exercised   (1,494,686) $40.38 (1,204,836) $36.24 (931,741) $30.88
Forfeited and expired   (151,525) $51.02 (273,920) $50.20 (257,032) $49.17
Outstanding at end of year   5,414,205 $45.36 6,142,073 $42.65 6,463,004 $42.17
                    
Options exercisable at year-end   3,211,115 $45.50 3,880,866 $44.39 4,464,475 $42.01
                    
Weighted-average fair value of                  
 options granted during the year $20.01    $12.88    $11.96   
 The following table summarizes information about stock options outstanding and exercisable at December 31, 2010:
              
   Options Outstanding Options Exercisable
Range of Exercise Prices Number Outstanding  Weighted-Average Remaining Contractual Life (in years) Weighted-Average Exercise Price Number Exercisable Weighted-Average Exercise Price
$20 to $30   480,573 5.6 $26.74 180,573 $26.47
$30 to $40   1,197,686 7.6 $39.60 480,164 $39.08
$40 to $50   2,175,950 5.5 $44.62 1,884,578 $44.65
$50+   1,559,996 7.6 $56.54 665,800 $57.71
   5,414,205 6.6 $45.36 3,211,115 $45.50
  2010 2009 2008 
Stock options vested    922,463  795,566  835,982 
Weighted-average exercise price   $42.16 $46.86 $47.21 
  Years Ended December 31, 
  2010 2009 2008 
Stock options   $16 $14 $16 
Restricted stock units    16  6  - 
Performance leveraged stock units  7  -  - 
Common stock    3  3  - 
Restricted stock    2  4  6 
Deferred stock    8  13  12 
  $52 $40 $34 
Income and Mining Taxes (Tables)
   Years Ended December 31, 
   2010 2009 2008 
Current:          
 United States   $(214) $(46) $(104) 
 Foreign    (1,022)  (782)  (353) 
    (1,236)  (828)  (457) 
Deferred:          
 United States    518  42  246 
 Foreign    (138)  (43)  69 
    380  (1)  315 
   $(856) $(829) $(142) 
  Years Ended December 31, 
  2010 2009 2008 
United States   $737 $291 $563 
Foreign    3,260  2,663  731 
  $3,997 $2,954 $1,294 
    Years Ended December 31,  
    2010 2009 2008  
Income before income and mining tax and other items   $3,997 $2,954 $1,294  
United States statutory corporate income tax rate    35% 35% 35% 
Income tax expense computed at United States statutory corporate income tax rate             
 statutory corporate income tax rate    (1,399)  (1,034)  (453)  
Reconciling items:           
 Tax benefit generated on change in form of a non-  440  -  159  
  U.S. subsidiary            
 Percentage depletion    151  127  130  
 Resolution of prior years’ uncertain income tax matters  11  38  69  
 Change in valuation allowance on deferred tax assets  18  32  (31)  
 Mining taxes (net of federal benefit)  (33)  (27)  (27)  
 Other    (44)  35  11  
Income and mining tax expense   $(856) $(829) $(142)  
  Components of the Company's deferred income tax assets (liabilities) are as follows:
          
    At December 31, 
    2010 2009 
Deferred income tax assets:       
 Exploration costs   $75 $72 
 Depreciation    6  21 
 Net operating losses and tax credits    799  980 
 Retiree benefit and vacation accrual costs    98  124 
 Remediation and reclamation costs    158  132 
 Investment in partnerships    563  57 
 Other    103  64 
     1,802  1,450 
 Valuation allowances    (435)  (437) 
     1,367  1,013 
          
Deferred income tax liabilities:        
 Net undistributed earnings of subsidiaries    (237)  (218) 
 Unrealized gain on investments    (176)  (137) 
 Depletable and amortizable costs associated with mineral rights    (857)  (826) 
 Derivative instruments    (25)  (37) 
 Other  -  (1) 
     (1,295)  (1,219) 
Net deferred income tax assets (liabilities)   $72 $(206) 
 Net deferred income tax assets and liabilities consist of:
         
   At December 31, 
   2010 2009 
Current deferred income tax assets   $177 $215 
Long-term deferred income tax assets    1,437  937 
Current deferred income tax liabilities   (54)  (17) 
Long-term deferred income tax liabilities    (1,488)  (1,341) 
   $72 $(206) 
   2010 2009 2008 
Total amount of gross unrecognized tax benefits at          
 beginning of year $130 $181 $230 
Additions for tax positions of prior years    3  (21)  29 
Additions for tax positions of current year    -  3  50 
Reductions due to settlements with taxing authorities    (9)  (27)  (57) 
Reductions due to lapse of statute of limitations    (8)  (6)  (71) 
Total amount of gross unrecognized tax benefits at end of          
 year $116 $130 $181 
Equity Income (Loss) of Affiliates (Tables)
Equity income (loss) of affiliates
NOTE 11 EQUITY INCOME (LOSS) OF AFFILIATES
           
  Years Ended December 31, 
  2010 2009 2008 
AGR Matthey Joint Venture   $3 $5 $(2) 
Regis Resources Ltd.  -  -  (3) 
Minera La Zanja S.R.L.   10  (4)  - 
Euronimba Ltd.  (10)  (17)  - 
  $3 $(16) $(5) 
Discontinued Operations (Tables)
   Years Ended December 31, 
   2010 2009 2008 
Sales $- $32 $75 
            
Income (loss) from operations:           
 Kori Kollo   $- $1 $(9) 
 Other  -  -  6 
    -  1  (3) 
            
Non-operating gain (loss)  (40)  (44)  1 
Pre-tax income (loss)    (40)  (43)  (2) 
Income tax benefit  12  27  15 
Income (loss) from discontinued operations   $(28) $(16) $13 
   Years Ended December 31, 
   2010 2009 2008 
Net cash provided from (used in) discontinued operations:          
 Income (loss) from discontinued operations   $(28) $(16) $13 
 Amortization    -  3  9 
 Deferred income taxes    (12)  (28)  4 
 Impairment of assets held for sale    -  44  - 
 Other operating adjustments and write-downs    -  7  19 
 Increase (decrease) in net operating liabilities    27  23  (149) 
   $(13) $33 $(104) 
            
Net cash used in investing activities of discontinued operations:          
 Proceeds from asset sales, net   $- $- $(6) 
 Additions to property, plant and mine development    -  -  (5) 
   $- $- $(11) 
            
Net cash used in financing activities of discontinued operations:          
 Repayment of debt   $- $(2) $(4) 
   $- $(2) $(4) 
Net Income attributable to Noncontrolling Interests (Tables)
Disclosure of net Income attributable to Noncontrolling Interest
NOTE 13    NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 
            
  Years Ended December 31, 
   2010 2009 2008 
 Batu Hijau   $549 $445 $98 
 Yanacocha    292  354  232 
 Other    (2)  (3)  (1) 
   $839 $796 $329 
Newmont Equity and Income Per Share (Tables)
    Years Ended December 31, 
    2010 2009 2008 
Net income attributable to Newmont stockholders:           
 Continuing operations   $2,305 $1,308 $816 
 Discontinued operations    (28)  (11)  15 
    $2,277 $1,297 $831 
             
Weighted average common shares (millions):          
 Basic    492  487  454 
 Effect of employee stock based awards    2  -  1 
 Effect of convertible notes  6  -  - 
 Diluted    500  487  455 
             
Net income attributable to Newmont stockholders per          
 common share          
 Basic:          
  Continuing operations   $4.69 $2.68 $1.80 
  Discontinued operations    (0.06)  (0.02)  0.03 
    $4.63 $2.66 $1.83 
             
 Diluted:          
  Continuing operations   $4.61 $2.68 $1.80 
  Discontinued operations    (0.06)  (0.02)  0.03 
    $4.55 $2.66 $1.83 
    Years Ended December 31,
    2010 2009 2008
Net income attributable to Newmont stockholders   $2,277 $1,297 $831
Transfers from the noncontrolling interests:         
 Increase in Additional paid-in capital from sale of PTNNT shares,         
  net of tax of $33 and $115, respectively  16  63  -
 Net income attributable to Newmont stockholders and transfers         
  from noncontrolling interests $2,293 $1,360 $831
Acquisitions (Tables)
Business Acquisitions Purchase Price Allocation
 Assets:     
 Cash   $1 
 Property, plant and mine development, net    1,073 
 Inventories and stockpiles    7 
 Other assets    11 
   $1,092 
 Liabilities:     
 Accrued liabilities   $33 
 Reclamation liabilities    15 
    48 
 Net assets acquired    $1,044 
Fair Value Accounting (Tables)
    Fair Value at December 31, 2010 
    Total Level 1 Level 2 Level 3 
 Assets:            
  Cash equivalents  $2,316 $2,316 $- $- 
  Marketable equity securities:              
   Extractive industries 1,573  1,573  -  - 
   Other 6  6  -  - 
  Marketable debt securities:            
   Asset backed commercial paper   19  -  -  19 
   Corporate 10  10  -  - 
   Auction rate securities   5  -  -  5 
  Trade receivable from provisional copper  412  412  -  - 
   and gold concentrate sales, net             
  Derivative instruments, net:              
   Foreign exchange forward contracts 301  -  301  - 
   Diesel forward contracts 8  -  8  - 
   Interest rate swap contracts 3  -  3  - 
    $4,653 $4,317 $312 $24 
 Liabilities:            
  8 5/8% debentures ($222 hedged portion)  $228 $- $228 $- 
  Boddington contingent consideration 83  -  -  83 
    $311 $- $228 $83 
    Auction Rate Securities Asset Backed Commercial Paper Total Assets Boddington Contingent Consideration Total Liabilities 
 Balance at beginning of period   $5 $18 $23 $85 $85 
  Unrealized gain  -  1  1  -  - 
  Revaluation  -  -  -  2  2 
  Settlements  -  -  -  (4)  (4) 
 Balance at end of period   $5 $19 $24 $83 $83 
Derivative Instruments (Tables)
    Expected Maturity Date 
              Total/ 
    2011 2012 2013 2014 2015 Average 
 A$ Fixed Forward Contracts:                    
  A$ notional (millions)    1,026  631  314  221  99  2,291 
  Average rate ($/A$)    0.82  0.84  0.84  0.83  0.80  0.83 
  Expected hedge ratio  72% 45% 22% 17% 8% 34%
 NZ$ Fixed Forward Contracts:                    
  NZ$ notional (millions)    67  23  -  -  -  90 
  Average rate ($/NZ$)    0.69  0.69  -  -  -  0.69 
  Expected hedge ratio  57% 22% -% -% -%  40%
    Expected Maturity Date 
        Total/ 
    2011 2012 Average 
 Diesel Fixed Forward Contracts:           
  Diesel gallons (millions)    21  7  28 
  Average rate ($/gallon)    2.28  2.44  2.32 
  Expected Nevada hedge ratio  50% 18% 34%
   Fair Values of Derivative Instruments 
   At December 31, 2010 
   Other Current Assets Other Long-Term Assets Other Current Liabilities Other Long-Term Liabilities 
 Foreign currency exchange contracts:            
  A$ fixed forward contracts  $181 $114 $- $- 
  NZ$ fixed forward contracts   5  1  -  - 
 Diesel fixed forward contracts 7  1  -  - 
 Interest rate swap contracts   3  -  -  - 
 Total derivative instruments (Note 21)$196 $116 $- $- 
               
   Fair Values of Derivative Instruments 
   At December 31, 2009 
   Other Current Assets Other Long-Term Assets Other Current Liabilities Other Long-Term Liabilities 
 Foreign currency exchange contracts:            
  A$ fixed forward contracts  $78 $53 $- $1 
  NZ$ fixed forward contracts   5  1  -  - 
  IDR fixed forward contracts   1  -  -  - 
 Diesel fixed forward contracts   5  1  -  - 
 Interest rate swap contracts   3  4  -  - 
 Total derivative instruments (Note 21)$92 $59 $- $1 
  Foreign Currency Exchange Contracts Diesel Forward Contracts          
For the years ended December 31,2010 2009 2008 2010 2009 2008          
                             
Cash flow hedging relationships:                           
 Gain (loss) recognized in other comprehensive income (effective portion)  $287 $245 $(166) $6 $7 $(18)          
 (1)? $92 $(6) $(17) $4 $(11) $(4)          
                             
                             
  Treasury Rate Lock Contracts                   
  2010 2009 2008                   
                             
Cash flow hedging relationships:                           
 Gain (loss) recognized in other comprehensive income (effective portion)  (2)? $- $11 $-                   

(1) The gain (loss) for the effective portion of foreign currency exchange and diesel cash flow hedges reclassified from Accumulated other comprehensive income is included in Costs applicable to sales.

(2) The gain for the effective portion of treasury rate lock cash flow hedges reclassified from Accumulated other comprehensive income is recorded in Interest expense, net.

 

  Interest Rate Swap Contracts 8 5/8% Debentures (Hedged Portion)
For the years ended December 31,2010 2009 2008 2010 2009 2008
                   
Fair value hedging relationships:                 
 Gain (loss) recognized in income (effective portion) (1)?$6 $4 $2 $- $(1) $(2)
 Gain (loss) recognized in income (ineffective portion) (2)?$(4) $(3) $4 $2 $(3) $6

(1) The gain (loss) recognized for the effective portion of fair value hedges and the underlying hedged debt is included in Interest expense, net.

(2) The ineffective portion recognized for fair value hedges and the underlying hedged debt is included in Other income, net.

 

Investments (Tables)
NOTE 18    INVESTMENTS             
     At December 31, 2010 
     Cost/Equity Unrealized Fair/Equity 
     Basis Gain Loss Basis 
 Current:              
  Marketable Equity Securities:             
   New Gold Inc.  5  54  -  59 
   Other  19  35  -  54 
     $24 $89 $- $113 
                 
 Long-term:              
  Marketable Debt Securities:             
   Asset backed commercial paper  $25 $- $(6) $19 
   Auction rate securities    7  -  (2)  5 
   Corporate    7  3  -  10 
      39  3  (8)  34 
  Marketable Equity Securities:              
   Canadian Oil Sands Trust    308  508  -  816 
   Gabriel Resources Ltd.    78  325  -  403 
   Regis Resources Ltd.  23  148  -  171 
   Other    39  37  -  76 
      448  1,018  -  1,466 
                 
  Other investments, at cost     11  -  -  11 
                 
  Investment in Affiliates:             
   La Zanja  57  -  -  57 
     $555 $1,021 $(8) $1,568 
                 

     At December 31, 2009 
     Cost/Equity Unrealized Fair/Equity 
     Basis Gain Loss Basis 
 Current:              
  Marketable Equity Securities:             
   Regis Resources Ltd. $5 $29 $- $34 
   Other  10  12  -  22 
     $15 $41 $- $56 
 Long-term:              
  Marketable Debt Securities:              
   Asset backed commercial paper  $24 $- $(6) $18 
   Auction rate securities    7  -  (2)  5 
   Corporate    8  2  -  10 
      39  2  (8)  33 
  Marketable Equity Securities:              
   Canadian Oil Sands Trust    292  584  -  876 
   Gabriel Resources Ltd.    74  136  -  210 
   Other    15  18  -  33 
      381  738  -  1,119 
                 
  Other investments, at cost     6  -  -  6 
                 
  Investment in Affiliates:              
   AGR Matthey Joint Venture    20  -  -  20 
   La Zanja  8  -  -  8 
     $454 $740 $(8) $1,186 
  Less than 12 Months  12 Months or Greater  Total
At December 31, 2010 Fair Value  Unrealized Losses  Fair Value  Unrealized Losses  Fair Value  Unrealized Losses
Asset backed commercial paper $- $- $19 $6 $19 $6
Auction rate securities   -  -  5  2  5  2
 $- $- $24 $8 $24 $8
                  
                  
                  
  Less than 12 Months  12 Months or Greater  Total
At December 31, 2009 Fair Value  Unrealized Losses  Fair Value  Unrealized Losses  Fair Value  Unrealized Losses
Asset backed commercial paper $- $- $18 $6 $18 $6
Auction rate securities   -  -  5  2  5  2
 $- $- $23 $8 $23 $8
Inventories (Tables)
Summary of Inventories
NOTE 19    INVENTORIES       
         
   At December 31, 
  2010 2009 
 In-process $142 $80 
 Concentrate  111  10 
 Precious metals  4  9 
 Materials, supplies and other  401  394 
   $658 $493 
Stockpiles and Ore on Leach Pads (Tables)
Stockpiles and Ore on Leach Pads
NOTE 20    STOCKPILES AND ORE ON LEACH PADS      
         
   At December 31, 
   2010 2009 
 Current:      
  Stockpiles$ 389 $ 206 
  Ore on leach pads  228   197 
   $ 617 $ 403 
 Long-term:      
  Stockpiles$ 1,397 $ 1,181 
  Ore on leach pads  360   321 
   $ 1,757 $ 1,502 
Other Assets (Tables)
Other Assets
NOTE 21    OTHER ASSETS      
   At December 31, 
   2010 2009 
 Other current assets:      
  Refinery metal inventory and receivable  $617 $671 
  Derivative instruments  196  92 
  Other prepaid assets 65  70 
  Other   84  67 
   $962 $900 
         
 Other long-term assets:      
  Goodwill$188 $188 
  Income tax receivable 119  - 
  Derivative instruments  116  59 
  Intangible assets 91  29 
  Debt issuance costs   39  50 
  Restricted cash   25  70 
  Other receivables 19  16 
  Other   144  70 
   $741 $482 
Property, Plant and Mine Development (Tables)
Property, Plant and Mine Development
NOTE 22    PROPERTY, PLANT AND MINE DEVELOPMENT
                      
     At December 31, 2010 At December 31, 2009
  Depreciable   Accumulated Net Book   Accumulated Net Book
 Life  Cost  Amortization  Value Cost  Amortization Value
  (in years)                  
Land    $118 $- $118 $111 $- $111
Facilities and equipment   1-27  12,424  (5,460)  6,964  12,099  (4,816)  7,283
Mine development   1-27  3,217  (1,445)  1,772  2,696  (1,181)  1,515
Mineral interests   1-27  3,463  (667)  2,796  3,380  (608)  2,772
Asset retirement cost   1-27  638  (238)  400  462  (210)  252
Construction-in-progress     857  -  857  437  -  437
     $20,717 $(7,810) $12,907 $19,185 $(6,815) $12,370
Leased assets included above in facilities and equipment   2-25 $421 $(289) $132 $421 $(275) $146
                      
     At December 31, 2010 At December 31, 2009
Mineral Interests    Gross     Gross    
  Amortization Carrying Accumulated Net Book Carrying Accumulated Net Book
  Period Value Amortization Value Value Amortization Value
  (in years)                  
Production stage   1-27 $1,235 $(660) $575 $1,207 $(601) $606
Development stage     149  -  149  155  -  155
Exploration stage   1-27  2,079  (7)  2,072  2,018  (7)  2,011
     $3,463 $(667) $2,796 $3,380 $(608) $2,772
Debt (Tables)

NOTE 23    DEBT            
             
 At December 31, 2010 At December 31, 2009 
 Current Non-Current Current Non-Current 
Sale-leaseback of refractory ore treatment plant  $ 30 $ 134 $ 24 $ 164 
8 5/8% debentures, net of discount (due 2011)    217   -   -   218 
2012 convertible senior notes, net of discount  -   488   -   463 
2014 convertible senior notes, net of discount  -   489   -   468 
2017 convertible senior notes, net of discount  -   434   -   417 
2019 senior notes, net of discount  -   896   -   896 
2035 senior notes, net of discount   -   598   -   597 
2039 senior notes, net of discount  -   1,087   -   1,087 
PTNNT project financing facility    -   -   87   133 
Yanacocha credit facility and senior notes  -   -   22   140 
Ahafo project facility    10   55   10   65 
Other capital leases    2   1   14   4 
 $ 259 $ 4,182 $ 157 $ 4,652 
 At December 31, 2010 At December 31, 2009
 Convertible Senior Notes Due Convertible Senior Notes Due
 2012 2014 2017 2012 2014 2017
Additional paid-in capital$46 $ 97 $ 123 $ 46 $ 97 $ 123
Principal amount$518 $ 575 $ 575 $ 518 $ 575 $ 575
Unamortized debt discount  (30)   (86)   (141)   (55)   (107)   (158)
Net carrying amount$488 $489 $434 $ 463 $ 468 $ 417
Other Liabilities (Tables)
Other Liabilities
NOTE 24    OTHER LIABILITIES      
         
   At December 31, 
   2010 2009 
 Other current liabilities:      
  Refinery metal payable$617 $671 
  Accrued operating costs 217  131 
  Taxes other than income and mining 135  73 
  Royalties 90  58 
  Accrued capital expenditures 83  115 
  Interest 66  72 
  Reclamation and remediation liabilities 64  54 
  Deferred income tax 54  17 
  Boddington contingent consideration 32  16 
  Other 60  110 
   $1,418 $1,317 
         
 Other long-term liabilities:      
  Boddington contingent consideration$51 $69 
  Power supply agreements 45  - 
  Income and mining taxes   36  38 
  Other   89  80 
   $221 $187 
Accumulated Other Comprehensive Income (Tables)
Accumulated Other Comprehensive Income [Text Block]
NOTE 25    ACCUMULATED OTHER COMPREHENSIVE INCOME
         
   At December 31, 2010 
   2010 2009 
 Unrealized gain on marketable securities, net of $200 and $138 tax expense, respectively $902 $635 
 Foreign currency translation adjustments    155  57 
 Pension liability adjustments, net of $95 and $86 tax benefit, respectively  (176)  (161) 
 Other post-retirement benefit adjustments, net of $6 and $4 tax expense, respectively  11  9 
 Changes in fair value of cash flow hedge instruments, net of tax expense and noncontrolling interests of $97 and $38, respectively  216  86 
   $1,108 $626 
Related Party Transaction (Tables)
Related Party Transactions
NOTE 26    RELATED PARTY TRANSACTIONS  
             
 Newmont had transactions with AGR, as follows:  
             
    Years Ended December 31, 
    2010 2009 2008 
  Gold and silver sales $3 $10 $10 
  Refining fees paid $- $3 $3 
             
 See Note 11 for a discussion of Newmont's investment in AGR.
Net Change in Operating Assets and Liabilities (Tables)
Net Changes in Operating Assets and Liabilities
   Years Ended December 31, 
   2010 2009 2008 
 Decrease (increase) in operating assets:         
  Trade and accounts receivable  $(153) $42 $81 
  Inventories, stockpiles and ore on leach pads   (501)  (378)  (343) 
  EGR refinery assets   116  (508)  38 
  Other assets   (87)  (19)  (208) 
 Increase (decrease) in operating liabilities:         
  Accounts payable and other accrued liabilities   38  177  (54) 
  EGR refinery liabilities   (116)  508  (38) 
  Reclamation liabilities   (51)  (49)  (103) 
   $(754) $(227) $(627) 
Supplemental Cash Flow Information (Tables)
Supplemental Cash Flow Information
NOTE 28    SUPPLEMENTAL CASH FLOW INFORMATION
           
  Years Ended December 31, 
  2010 2009 2008 
Income and mining taxes, net of refunds   $1,185 $431 $816 
Pension plan and other benefit contributions   $163 $58  $76  
Interest, net of amounts capitalized   $228 $117 $96  
Condensed Consolidating Financial Statements (Tables)
                  
    Years Ended December 31, 2010
        Newmont
    Newmont      Mining
    Mining Newmont Other  Corporation
Condensed Consolidating Statement of Income Corporation USA Subsidiaries Eliminations Consolidated
                  
Sales $- $6,568 $2,972 $- $9,540
                  
Costs and expenses               
 Costs applicable to sales (1)  -  2,171  1,341  (28)  3,484
 Amortization    -  601  345  (1)  945
 Reclamation and remediation   -  48  17  -  65
 Exploration    -  131  87  -  218
 Advanced projects, research and development    -  110  107  (1)  216
 General and administrative    -  144  4  30  178
 Write-down of property, plant and mine               
  development  -  5  1  -  6
 Other expense, net  -  183  78  -  261
     -  3,393  1,980  -  5,373
                  
Other income (expense)                
 Other income, net    (4)  29  84  -  109
 Interest income - intercompany    161  7  5  (173)  -
 Interest expense - intercompany    (11)  -  (162)  173  -
 Interest expense, net    (246)  (27)  (6)  -  (279)
     (100)  9  (79)  -  (170)
Income before income and mining tax and other items    (100)  3,184  913  -  3,997
Income and mining tax expense    479  (1,114)  (221)  -  (856)
Equity income (loss) of affiliates    1,926  2  281  (2,206)  3
Income from continuing operations    2,305  2,072  973  (2,206)  3,144
Income (loss) from discontinued operations    (28)  2  (30)  28  (28)
Net income  2,277  2,074  943  (2,178)  3,116
Net income attributable to noncontrolling interests  -  (1,026)  34  153  (839)
Net income attributable to Newmont stockholders $2,277 $1,048 $977 $(2,025) $2,277
                  
(1)  Excludes Amortization and Reclamation and remediation.         

                  
    Years Ended December 31, 2009
                Newmont
    Newmont         Mining
    Mining Newmont Other    Corporation
Condensed Consolidating Statement of Income Corporation USA Subsidiaries Eliminations Consolidated
                  
Sales $- $5,911 $1,794 $- $7,705
                  
Costs and expenses               
 Costs applicable to sales (1)  -  2,128  903  (23)  3,008
 Amortization    -  565  242  (1)  806
 Reclamation and remediation   -  41  18  -  59
 Exploration    -  101  86  -  187
 Advanced projects, research and development    -  66  71  (2)  135
 General and administrative    -  129  4  26  159
 Write-down of property, plant and mine               
  development  -  6  1  -  7
 Other expense, net  9  160  189  -  358
     9  3,196  1,514  -  4,719
Other income (expense)                
 Other income, net    (11)  27  72  -  88
 Interest income - intercompany    90  7  5  (102)  -
 Interest expense - intercompany    (9)  -  (93)  102  -
 Interest expense, net    (65)  (47)  (8)  -  (120)
     5  (13)  (24)  -  (32)
Income before income and mining tax and other items  (4)  2,702  256  -  2,954
Income and mining tax expense    1  (781)  (49)  -  (829)
Equity income (loss) of affiliates    1,316  5  185  (1,522)  (16)
Income from continuing operations    1,313  1,926  392  (1,522)  2,109
Income (loss) from discontinued operations    (16)  (16)  -  16  (16)
Net income  1,297  1,910  392  (1,506)  2,093
Net income attributable to noncontrolling interests  -  (795)  (77)  76  (796)
Net income attributable to Newmont stockholders $1,297 $1,115 $315 $(1,430) $1,297
                  
(1)Excludes Amortization and Reclamation and remediation.            

                  
    Years Ended December 31, 2008
                Newmont
    Newmont         Mining
    Mining Newmont Other    Corporation
Condensed Consolidating Statement of Income Corporation USA Subsidiaries Eliminations Consolidated
                  
Sales $- $4,638 $1,486 $- $6,124
                  
Costs and expenses               
 Costs applicable to sales (1)  -  2,193  866  (21)  3,038
 Amortization    -  549  190  (1)  738
 Reclamation and remediation   -  85  57  -  142
 Exploration    -  131  82  -  213
 Advanced projects, research and development    -  63  107  (4)  166
 General and administrative    -  113  6  25  144
 Write-down of property, plant and mine               
  development  -  15  122  -  137
 Other expense, net  1  176  62  1  240
     1  3,325  1,492  -  4,818
Other income (expense)                
 Other income, net    (40)  112  51  -  123
 Interest income - intercompany    278  24  -  (302)  -
 Interest expense - intercompany    (8)  -  (294)  302  -
 Interest expense, net    (74)  (56)  (5)  -  (135)
     156  80  (248)  -  (12)
Income before income and mining tax and other items  155  1,393  (254)  -  1,294
Income and mining tax expense  (55)  (132)  45  -  (142)
Equity income (loss) of affiliates    718  4  102  (829)  (5)
Income from continuing operations    818  1,265  (107)  (829)  1,147
Income (loss) from discontinued operations    13  (6)  3  3  13
Net income   831  1,259  (104)  (826)  1,160
Net income attributable to noncontrolling interests  -  (347)  10  8  (329)
Net income attributable to Newmont stockholders $831 $912 $(94) $(818) $831
                  
(1) Excludes Amortization and Reclamation and remediation.            
    For the Year Ended December 31, 2010
                Newmont
    Newmont         Mining
    MiningNewmontOther   Corporation
Condensed Consolidating Statement of Cash FlowsCorporationUSASubsidiariesEliminationsConsolidated
Operating activities:               
  Net income$2,277 $2,074 $943 $(2,178) $3,116 
  Adjustments   (600)  865  (1,625)  2,178  818 
  Net change in operating assets and liabilities   (57)  (512)  (185)  -  (754) 
Net cash provided from (used in) continuing operations   1,620  2,427  (867)  -  3,180 
Net cash used in discontinued operations   -  (13)  -  -  (13) 
Net cash provided from (used in) operations   1,620  2,414  (867)  -  3,167 
Investing activities:               
  Additions to property, plant and mine development   -  (721)  (681)  -  (1,402) 
  Acquisitions, net    -  -  (4)  -  (4) 
  Proceeds from sale of marketable securities -  -  3  -  3 
  Purchases of marketable securities   -  (5)  (23)  -  (28) 
  Proceeds from sale of other assets -  16  40  -  56 
  Other   -  -  (44)  -  (44) 
Net cash used in investing activities   -  (710)  (709)  -  (1,419) 
Financing activities:               
  Net repayments -  (420)  (10)  -  (430) 
  Net intercompany borrowings (repayments) (1,442)  (152)  1,730  (136)  - 
  Proceeds from stock issuance 60  -  -  -  60 
  Sale of subsidiary shares to noncontrolling interests -  229  -  -  229 
  Acquisition of subsidiary shares from noncontrolling                
   interests -  -  (110)  -  (110) 
  Dividends paid to noncontrolling interests -  (598)  -  136  (462) 
  Dividends paid to common stockholders   (246)  -  -  -  (246) 
  Change in restricted cash and other   -  46  (2)  -  44 
Net cash provided from (used in) financing activities   (1,628)  (895)  1,608  -  (915) 
Effect of exchange rate changes on cash   -  1  7  -  8 
Net change in cash and cash equivalents   (8)  810  39  -  841 
Cash and cash equivalents at beginning of period   8  3,067  140  -  3,215 
Cash and cash equivalents at end of period  $- $3,877 $179 $- $4,056 

    For the Year Ended December 31, 2009
                Newmont
    Newmont         Mining
    MiningNewmontOther   Corporation
Condensed Consolidating Statement of Cash FlowsCorporationUSASubsidiariesEliminationsConsolidated
Operating activities:               
  Net income (loss)$1,297 $1,910 $392 $(1,506) $2,093 
  Adjustments   75  683  (1,216)  1,506  1,048 
  Net change in operating assets and liabilities   135  (400)  38  -  (227) 
Net cash provided from (used in) continuing operations   1,507  2,193  (786)  -  2,914 
Net cash provided from discontinued operations   -  33  -  -  33 
Net cash provided from (used in) operations   1,507  2,226  (786)  -  2,947 
Investing activities:               
  Additions to property, plant and mine development   -  (470)  (1,299)  -  (1,769) 
  Acquisitions, net    (8)  (11)  (988)  -  (1,007) 
  Proceeds from sale of marketable securities -  -  17  -  17 
  Purchases of marketable securities -  -  (5)  -  (5) 
  Proceeds from sale of other assets -  15  3  -  18 
  Other   -  -  (35)  -  (35) 
Net cash used in investing activities   (8)  (466)  (2,307)  -  (2,781) 
Financing activities:               
  Net borrowings (repayments)   1,722  (154)  -  -  1,568 
  Net intercompany borrowings (repayments)  (4,298)  953  3,345  -  - 
  Proceeds from stock issuance   1,278  -  -  -  1,278 
  Sale of subsidiary shares to noncontrolling interests -  638  -  -  638 
  Acquisition of subsidiary shares from noncontrolling               
   interests -  -  (287)  -  (287) 
  Dividends paid to noncontrolling interests -  (391)  (3)  -  (394) 
  Dividends paid to common stockholders   (196)  -  -  -  (196) 
  Change in restricted cash and other   2  (48)  11  -  (35) 
Net cash provided from (used in) financing activities of               
 continuing operations (1,492)  998  3,066  -  2,572 
Net cash used in financing activities of discontinued               
 operations  -  (2)  -  -  (2) 
Net cash provided from (used in) financing activities   (1,492)  996  3,066  -  2,570 
Effect of exchange rate changes on cash   1  1  42  -  44 
Net change in cash and cash equivalents   8  2,757  15  -  2,780 
Cash and cash equivalents at beginning of period   -  310  125  -  435 
Cash and cash equivalents at end of period  $8 $3,067 $140 $- $3,215 

    For the Year Ended December 31, 2008
                Newmont
    Newmont         Mining
    MiningNewmontOther   Corporation
Condensed Consolidating Statement of Cash FlowsCorporationUSASubsidiariesEliminationsConsolidated
Operating activities:               
  Net income (loss)$831 $1,259 $(104) $(826) $1,160 
  Adjustments   49  419  (430)  826  864 
  Net change in operating assets and liabilities   17  (575)  (69)  -  (627) 
Net cash provided from (used in) continuing operations   897  1,103  (603)  -  1,397 
Net cash provided from (used in) discontinued operations   -  (123)  19  -  (104) 
Net cash provided from (used in) operations   897  980  (584)  -  1,293 
Investing activities:               
  Additions to property, plant and mine development   -  (707)  (1,163)  -  (1,870) 
  Acquisitions, net    -  (7)  (318)  -  (325) 
  Proceeds from sale of marketable securities -  -  50  -  50 
  Purchases of marketable securities -  -  (17)  -  (17) 
  Proceeds from sale of other assets -  17  35  -  52 
  Other   -  -  (36)  -  (36) 
Net cash used in investing activities of continuing operations -  (697)  (1,449)  -  (2,146) 
Net cash provided from (used in) investing activities of               
 discontinued operations -  (15)  4  -  (11) 
Net cash used in investing activities   -  (712)  (1,445)  -  (2,157) 
Financing activities:               
  Net borrowings (repayments)   757  (116)  (46)  -  595 
  Net intercompany borrowings (repayments)  (1,518)  (287)  1,805  -  - 
  Proceeds from stock issuance   29  -  -  -  29 
  Dividends paid to noncontrolling interests -  (385)  (4)  -  (389) 
  Dividends paid to common stockholders   (182)  -  -  -  (182) 
  Change in restricted cash and other   17  48  9  -  74 
Net cash provided from (used in) financing activities of               
 continuing operations (897)  (740)  1,764  -  127 
Net cash used in financing activities of discontinued               
 operations  -  (4)  -  -  (4) 
Net cash provided from (used in) financing activities   (897)  (744)  1,764  -  123 
Effect of exchange rate changes on cash   -  (3)  (51)  -  (54) 
Net change in cash and cash equivalents   -  (479)  (316)  -  (795) 
Cash and cash equivalents at beginning of period   -  789  441  -  1,230 
Cash and cash equivalents at end of period  $- $310 $125 $- $435 
                  
    At December 31, 2010
            Newmont
    Newmont       Mining
    Mining Newmont Other   Corporation
Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated
Assets               
 Cash and cash equivalents   $- $3,877 $179 $- $4,056
 Trade receivables    -  501  81  -  582
 Accounts receivable    2,222  802  265  (3,201)  88
 Investments  -  72  41  -  113
 Inventories    -  388  270  -  658
 Stockpiles and ore on leach pads    -  513  104  -  617
 Deferred income tax assets    -  170  7  -  177
 Other current assets    -  77  885  -  962
  Current assets    2,222  6,400  1,832  (3,201)  7,253
 Property, plant and mine development, net    -  5,364  7,562  (19)  12,907
 Investments    -  25  1,543  -  1,568
 Investments in subsidiaries    12,295  35  1,909  (14,239)  -
 Stockpiles and ore on leach pads    -  1,347  410  -  1,757
 Deferred income tax assets    638  690  109  -  1,437
 Other long-term assets    2,675  496  584  (3,014)  741
  Total assets   $17,830 $14,357 $13,949 $(20,473) $25,663
                  
Liabilities               
 Debt   $- $249 $10 $- $259
 Accounts payable    355  1,269  1,996  (3,193)  427
 Employee-related benefits    -  222  66  -  288
 Income and mining taxes    19  261  75  -  355
 Other current liabilities    56  373  2,959  (1,970)  1,418
  Current liabilities    430  2,374  5,106  (5,163)  2,747
 Debt    3,991  135  56  -  4,182
 Reclamation and remediation liabilities    -  676  308  -  984
 Deferred income tax liabilities    -  513  975  -  1,488
 Employee-related benefits    5  244  76  -  325
 Other long-term liabilities    375  56  2,824  (3,034)  221
  Total liabilities    4,801  3,998  9,345  (8,197)  9,947
Equity               
 Preferred stock    -  -  61  (61)  -
 Common stock    778  -  -  -  778
 Additional paid-in capital    7,963  2,722  3,894  (6,300)  8,279
 Accumulated other comprehensive income  1,108  (75)  1,180  (1,105)  1,108
 Retained earnings   3,180  4,850  (1,109)  (3,741)  3,180
 Newmont stockholders’ equity    13,029  7,497  4,026  (11,207)  13,345
 Noncontrolling interests    -  2,862  578  (1,069)  2,371
  Total equity  13,029  10,359  4,604  (12,276)  15,716
  Total liabilities and equity $17,830 $14,357 $13,949 $(20,473) $25,663
                  

                  
    At December 31, 2009
            Newmont
    Newmont       Mining
    Mining Newmont Other   Corporation
Condensed Consolidating Balance Sheet Corporation USA Subsidiaries Eliminations Consolidated
Assets               
 Cash and cash equivalents   $8 $3,067 $140 $- $3,215
 Trade receivables    -  417  21  -  438
 Accounts receivable    2,338  673  363  (3,272)  102
 Investments  -  4  52  -  56
 Inventories    -  307  186  -  493
 Stockpiles and ore on leach pads    -  331  72  -  403
 Deferred income tax assets    -  157  58  -  215
 Other current assets    -  78  822  -  900
  Current assets    2,346  5,034  1,714  (3,272)  5,822
 Property, plant and mine development, net    -  5,195  7,193  (18)  12,370
 Investments    -  26  1,160  -  1,186
 Investments in subsidiaries    9,842  31  1,089  (10,962)  -
 Stockpiles and ore on leach pads    -  1,323  179  -  1,502
 Deferred income tax assets    -  844  93  -  937
 Other long-term assets    2,551  357  419  (2,845)  482
  Total assets   $14,739 $12,810 $11,847 $(17,097) $22,299
                  
Liabilities               
 Debt   $- $147 $10 $- $157
 Accounts payable    46  1,201  2,413  (3,264)  396
 Employee-related benefits    -  202  48  -  250
 Income and mining taxes    -  192  8  -  200
 Other current liabilities    58  281  2,949  (1,971)  1,317
  Current liabilities    104  2,023  5,428  (5,235)  2,320
 Debt  3,928  659  65  -  4,652
 Reclamation and remediation liabilities    -  565  240  -  805
 Deferred income tax liabilities    31  494  816  -  1,341
 Employee-related benefits    4  324  53  -  381
 Other long-term liabilities    338  75  2,637  (2,863)  187
  Total liabilities    4,405  4,140  9,239  (8,098)  9,686
Equity               
 Preferred stock    -  -  61  (61)  -
 Common stock    770  -  -  -  770
 Additional paid-in capital    7,789  2,709  3,874  (6,214)  8,158
 Accumulated other comprehensive income  626  (125)  738  (613)  626
 Retained earnings  1,149  3,801  (2,080)  (1,721)  1,149
 Newmont stockholders’ equity    10,334  6,385  2,593  (8,609)  10,703
 Noncontrolling interests    -  2,285  15  (390)  1,910
  Total equity  10,334  8,670  2,608  (8,999)  12,613
  Total liabilities and equity $14,739 $12,810 $11,847 $(17,097) $22,299
                  
Unaudited Supplemental Data (Tables)
Quarterly Financial Information Tables
NOTE 32    UNAUDITED SUPPLEMENTARY DATA
               
Quarterly Data            
               
  The following is a summary of selected quarterly financial information (unaudited):
               
    2010
    Three Months Ended
    March 31 June 30  September 30 December 31
Sales $2,242 $2,153 $2,597 $2,548
(1) $1,135 $1,062 $1,447 $1,402
(2) $546 $382 $537 $840
Income (loss) from discontinued operations(2)  -  -  -  (28)
(2) $546 $382 $537 $812
Income per common share            
 Basic:            
  Continuing operations $1.11 $0.78 $1.09 $1.71
  Discontinued operations  -  -  -  (0.06)
    $1.11 $0.78 $1.09 $1.65
 Diluted:            
  Continuing operations $1.11 $0.77 $1.07 $1.67
  Discontinued operations  -  -  -  (0.06)
    $1.11 $0.77 $1.07 $1.61
Weighted average common shares (millions)            
  Basic  491  492  493  493
  Diluted  493  499  502  504
Cash dividends declared per common share   $0.10 $0.10 $0.15 $0.15
Closing price of common stock   $50.93 $61.74 $62.81 $61.43
               
    2009
    Three Months Ended
    March 31 June 30  September 30 December 31
Sales $1,536 $1,602 $2,049 $2,518
(1) $606 $726 $1,083 $1,417
(2) $189 $171 $388 $560
Income (loss) from discontinued operations(2)  -  (9)  -  (2)
(2) $189 $162 $388 $558
Income per common share            
 Basic:            
  Continuing operations $0.40 $0.35 $0.79 $1.14
  Discontinued operations  -  (0.02)  -  -
    $0.40 $0.33 $0.79 $1.14
 Diluted:            
  Continuing operations $0.40 $0.35 $0.79 $1.13
  Discontinued operations  -  (0.02)  -  -
    $0.40 $0.33 $0.79 $1.13
Weighted average common shares (millions)            
  Basic  472  490  490  491
  Diluted  473  491  491  493
Cash dividends declared per common share   $0.10 $0.10 $0.10 $0.10
Closing price of common stock   $44.76 $40.87 $44.02 $47.31

 

(1)       Sales less Costs applicable to sales, Amortization and Reclamation and remediation.

(2)       Attributable to Newmont stockholders.

 

Summary of Significant Accounting Policies (Details)
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2008
Summary of Significant Accounting Policies (Textuals)
 
 
 
Ownership interest in subsidiaries
0.56 
0.63 
0.8 
Noncontrolling interest, ownership percentage by noncontrolling owners
0.2 
 
 
Batu Hijau [Member]
 
 
 
Summary of Significant Accounting Policies (Textuals)
 
 
 
Ownership interest in subsidiaries
0.315 
 
 
Segment Information (Details)
In Millions
3 Months Ended
Dec. 31,
Year Ended
Dec. 31,
2010
2009
2010
2009
2008
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
9,540 
7,705 
6,124 
Costs Applicable to Sales
 
 
3,484 
3,008 
3,038 
Amortization
 
 
945 
806 
738 
Advanced Projects and Exploration
 
 
434 
322 
379 
Pre-tax Income
 
 
3,997 
2,954 
1,294 
Total Assets
25,663 
22,299 
25,663 
22,299 
15,727 
Capital Expenditures
 
 
1,374 1
1,773 2
1,805 3
Segment Information (Textuals) [Abstract]
 
 
 
 
 
Change in accrued capital expenditures
 
 
28 
(4)
65 
Consolidated capital expenditures on a cash basis
 
 
1,402 
1,769 
1,870 
Sales
2,548 
2,518 
9,540 
7,705 
6,124 
Stockpiles and ore on leach pads [Abstract]
 
 
 
 
 
Stockpiles and ore on leach pads
2,374 
1,905 
2,374 
1,905 
 
Revenues from export and domestic sales [Abstract]
 
 
 
 
 
Sales
 
 
9,540 
7,705 
6,124 
Long-lived assets
 
 
 
 
 
Long-lived assets
15,380 
14,284 
15,380 
14,284 
 
Batu Hijau [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
2,462 
1,842 
1,013 
Costs Applicable to Sales
 
 
492 
425 
523 
Amortization
 
 
132 
108 
105 
Advanced Projects and Exploration
 
 
Pre-tax Income
 
 
1,736 
1,242 
301 
Total Assets
 
 
3,398 
3,129 
2,371 
Capital Expenditures
 
 
67 
44 
83 
Write-down of property, plant and mine development [Abstract]
 
 
 
 
 
Write-down of property, plant and mine development
 
 
10 
Stockpiles and ore on leach pads [Abstract]
 
 
 
 
 
Stockpiles and ore on leach pads
 
 
879 
834 
 
Batu Hijau [Member] | Gold [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
776 
550 
261 
Costs Applicable to Sales
 
 
155 
118 
124 
Amortization
 
 
42 
30 
25 
Batu Hijau [Member] | Copper [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
1,686 
1,292 
752 
Costs Applicable to Sales
 
 
337 
307 
399 
Amortization
 
 
90 
78 
80 
Nevada [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
2,111 
1,943 
1,929 
Costs Applicable to Sales
 
 
974 
1,019 
993 
Amortization
 
 
271 
261 
246 
Advanced Projects and Exploration
 
 
85 
54 
50 
Pre-tax Income
 
 
738 
583 
591 
Total Assets
 
 
3,387 
3,236 
3,215 
Capital Expenditures
 
 
298 
205 
299 
Write-down of property, plant and mine development [Abstract]
 
 
 
 
 
Write-down of property, plant and mine development
 
 
Stockpiles and ore on leach pads [Abstract]
 
 
 
 
 
Stockpiles and ore on leach pads
 
 
479 
445 
 
La Herradura [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
217 
113 
83 
Costs Applicable to Sales
 
 
73 
42 
38 
Amortization
 
 
19 
11 
Advanced Projects and Exploration
 
 
Pre-tax Income
 
 
118 
57 
32 
Total Assets
 
 
216 
137 
90 
Capital Expenditures
 
 
41 
54 
27 
Stockpiles and ore on leach pads [Abstract]
 
 
 
 
 
Stockpiles and ore on leach pads
 
 
 
Hope Bay [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
Costs Applicable to Sales
 
 
Amortization
 
 
13 
12 
Advanced Projects and Exploration
 
 
98 
66 
59 
Pre-tax Income
 
 
(111)
(77)
(59)
Total Assets
 
 
2,152 
1,862 
1,621 
Capital Expenditures
 
 
115 
82 
Other North America [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
Costs Applicable to Sales
 
 
Amortization
 
 
Advanced Projects and Exploration
 
 
29 
Pre-tax Income
 
 
(1)
(7)
(163)
Total Assets
 
 
112 
55 
52 
Capital Expenditures
 
 
Total North America [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
2,328 
2,056 
2,012 
Costs Applicable to Sales
 
 
1,047 
1,061 
1,031 
Amortization
 
 
304 
284 
255 
Advanced Projects and Exploration
 
 
190 
125 
144 
Pre-tax Income
 
 
744 
556 
401 
Total Assets
 
 
5,867 
5,290 
4,978 
Capital Expenditures
 
 
454 
264 
408 
Yanacocha [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
1,778 
2,013 
1,613 
Costs Applicable to Sales
 
 
630 
642 
637 
Amortization
 
 
162 
168 
170 
Advanced Projects and Exploration
 
 
24 
23 
28 
Pre-tax Income
 
 
893 
1,089 
694 
Total Assets
 
 
2,682 
2,472 
1,902 
Capital Expenditures
 
 
167 
119 
202 
Write-down of property, plant and mine development [Abstract]
 
 
 
 
 
Write-down of property, plant and mine development
 
 
Stockpiles and ore on leach pads [Abstract]
 
 
 
 
 
Stockpiles and ore on leach pads
 
 
496 
369 
 
Other South America [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
Costs Applicable to Sales
 
 
Amortization
 
 
Advanced Projects and Exploration
 
 
38 
23 
38 
Pre-tax Income
 
 
(34)
(8)
Total Assets
 
 
292 
32 
30 
Capital Expenditures
 
 
134 
27 
34 
Total South America [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
1,778 
2,013 
1,613 
Costs Applicable to Sales
 
 
630 
642 
637 
Amortization
 
 
163 
168 
170 
Advanced Projects and Exploration
 
 
62 
46 
66 
Pre-tax Income
 
 
859 
1,090 
686 
Total Assets
 
 
2,974 
2,504 
1,932 
Capital Expenditures
 
 
301 
146 
236 
Boddington [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
996 
128 
Costs Applicable to Sales
 
 
493 
61 
Amortization
 
 
138 
19 
Advanced Projects and Exploration
 
 
32 
10 
Pre-tax Income
 
 
304 
(59)
(13)
Total Assets
 
 
4,323 
3,975 
1,735 
Capital Expenditures
 
 
146 
1,093 
815 
Stockpiles and ore on leach pads [Abstract]
 
 
 
 
 
Stockpiles and ore on leach pads
 
 
248 
59 
 
Boddington [Member] | Gold [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
834 
101 
 
Costs Applicable to Sales
 
 
400 
45 
 
Amortization
 
 
113 
15 
 
Boddington [Member] | Copper [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
162 
27 
 
Costs Applicable to Sales
 
 
93 
16 
 
Amortization
 
 
25 
 
Bank of Nova Scotia [Member]
 
 
 
 
 
Segment Information (Textuals) [Abstract]
 
 
 
 
 
Sales
 
 
2,435 
2,658 
1,618 
Sales percentage
 
 
0.32 
0.42 
0.3 
BNP Paribas [Member]
 
 
 
 
 
Segment Information (Textuals) [Abstract]
 
 
 
 
 
Sales
 
 
 
 
1,239 
Sales percentage
 
 
 
 
0.23 
Other Australia New Zealand [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
1,321 
1,138 
1,050 
Costs Applicable to Sales
 
 
585 
577 
642 
Amortization
 
 
108 
136 
122 
Advanced Projects and Exploration
 
 
31 
21 
24 
Pre-tax Income
 
 
575 
374 
268 
Total Assets
 
 
1,025 
870 
819 
Capital Expenditures
 
 
176 
122 
130 
Write-down of property, plant and mine development [Abstract]
 
 
 
 
 
Write-down of property, plant and mine development
 
 
Stockpiles and ore on leach pads [Abstract]
 
 
 
 
 
Stockpiles and ore on leach pads
 
 
145 
121 
 
Other Asia Pacific [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
Costs Applicable to Sales
 
 
Amortization
 
 
Advanced Projects and Exploration
 
 
19 
12 
16 
Pre-tax Income
 
 
(14)
(50)
(101)
Total Assets
 
 
535 
256 
87 
Capital Expenditures
 
 
17 
Total Asia Pacific [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
4,779 
3,108 
2,063 
Costs Applicable to Sales
 
 
1,570 
1,063 
1,165 
Amortization
 
 
380 
266 
230 
Advanced Projects and Exploration
 
 
59 
65 
52 
Pre-tax Income
 
 
2,601 
1,507 
455 
Total Assets
 
 
9,281 
8,230 
5,012 
Capital Expenditures
 
 
406 
1,262 
1,030 
Ahafo [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
655 
528 
435 
Costs Applicable to Sales
 
 
237 
242 
205 
Amortization
 
 
78 
68 
63 
Advanced Projects and Exploration
 
 
24 
13 
18 
Pre-tax Income
 
 
298 
178 
145 
Total Assets
 
 
1,055 
985 
984 
Capital Expenditures
 
 
109 
75 
109 
Stockpiles and ore on leach pads [Abstract]
 
 
 
 
 
Stockpiles and ore on leach pads
 
 
121 
72 
 
Other Africa [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
Costs Applicable to Sales
 
 
Amortization
 
 
Advanced Projects and Exploration
 
 
10 
31 
Pre-tax Income
 
 
(10)
(7)
(31)
Total Assets
 
 
291 
202 
197 
Capital Expenditures
 
 
70 
10 
Total Africa [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
655 
528 
435 
Costs Applicable to Sales
 
 
237 
242 
205 
Amortization
 
 
78 
68 
63 
Advanced Projects and Exploration
 
 
33 
23 
49 
Pre-tax Income
 
 
288 
171 
114 
Total Assets
 
 
1,346 
1,187 
1,181 
Capital Expenditures
 
 
179 
85 
111 
Corporate and Other [Member]
 
 
 
 
 
Financial Information of Newmont's Segments [Abstract]
 
 
 
 
 
Sales
 
 
Costs Applicable to Sales
 
 
Amortization
 
 
20 
20 
20 
Advanced Projects and Exploration
 
 
90 
63 
68 
Pre-tax Income
 
 
(495)
(370)
(362)
Total Assets
 
 
6,195 
5,088 
2,624 4
Capital Expenditures
 
 
34 
16 
20 
Write-down of property, plant and mine development [Abstract]
 
 
 
 
 
Write-down of property, plant and mine development
 
 
121 
Europe [Member]
 
 
 
 
 
Revenues from export and domestic sales [Abstract]
 
 
 
 
 
Sales
 
 
6,209 
5,573 
4,756 
Japan [Member]
 
 
 
 
 
Revenues from export and domestic sales [Abstract]
 
 
 
 
 
Sales
 
 
1,544 
833 
464 
Indonesia [Member]
 
 
 
 
 
Revenues from export and domestic sales [Abstract]
 
 
 
 
 
Sales
 
 
372 
440 
307 
Long-lived assets
 
 
 
 
 
Long-lived assets
 
 
2,109 
2,067 
 
Korea [Member]
 
 
 
 
 
Revenues from export and domestic sales [Abstract]
 
 
 
 
 
Sales
 
 
760 
465 
231 
Mexico [Member]
 
 
 
 
 
Revenues from export and domestic sales [Abstract]
 
 
 
 
 
Sales
 
 
217 
113 
83 
Australia [Member]
 
 
 
 
 
Revenues from export and domestic sales [Abstract]
 
 
 
 
 
Sales
 
 
110 
222 
170 
Long-lived assets
 
 
 
 
 
Long-lived assets
 
 
5,055 
4,683 
 
India [Member]
 
 
 
 
 
Revenues from export and domestic sales [Abstract]
 
 
 
 
 
Sales
 
 
30 
32 
United States [Member]
 
 
 
 
 
Long-lived assets
 
 
 
 
 
Long-lived assets
3,031 
3,059 
 
 
 
Canada [Member]
 
 
 
 
 
Long-lived assets
 
 
 
 
 
Long-lived assets
2,088 
1,869 
 
 
 
Peru [Member]
 
 
 
 
 
Long-lived assets
 
 
 
 
 
Long-lived assets
1,772 
1,443 
 
 
 
Ghana [Member]
 
 
 
 
 
Long-lived assets
 
 
 
 
 
Long-lived assets
1,231 
1,093 
 
 
 
Other Countries [Member]
 
 
 
 
 
Revenues from export and domestic sales [Abstract]
 
 
 
 
 
Sales
 
 
328 
29 
81 
Long-lived assets
 
 
 
 
 
Long-lived assets
 
 
94 
70 
 
Reclamation and Remediation (Details)
In Millions
Year Ended
Dec. 31,
2010
2009
2008
Reconciliation of Reclamation and Remediation Liabilities
 
 
 
Balance at beginning of period
859 
757 
 
Additions, changes in estimates and other
188 
105 
 
Liabilities settled
(51)
(49)
 
Accretion expense
52 
46 
 
Balance at end of period
1,048 
859 
757 
Reclamation and Remediation Expenses
 
 
 
Reclamation
13 
13 
101 
Accretion - operating
44 
34 
31 
Accretion - non-operating
12 
10 
Reclamation and remediation expense, total
65 
59 
142 
Reclamation And Remediation (Textuals) [Abstract]
 
 
 
Accrued for reclamation obligations relating to mineral properties
904 
698 
 
Accrued obligation associated with former, primarily historic, mining activities
144 
161 
 
Reclamation and remediation liabilities, current
64 
54 
 
Additions, changes in estimates and other
188 
105 
 
Operating [Member]
 
 
 
Reconciliation of Reclamation and Remediation Liabilities
 
 
 
Additions, changes in estimates and other
186 
90 
 
Reclamation And Remediation (Textuals) [Abstract]
 
 
 
Additions, changes in estimates and other
186 
90 
 
Nonoperating [Member]
 
 
 
Reconciliation of Reclamation and Remediation Liabilities
 
 
 
Additions, changes in estimates and other
15 
 
Reclamation And Remediation (Textuals) [Abstract]
 
 
 
Additions, changes in estimates and other
15 
 
Marketable Debt Securities Long-Term [Member]
 
 
 
Reclamation And Remediation (Textuals) [Abstract]
 
 
 
Asset retirement obligation restricted assets
10 
10 
 
Marketable Equity Securities Long-Term [Member]
 
 
 
Reclamation And Remediation (Textuals) [Abstract]
 
 
 
Asset retirement obligation restricted assets
 
Restricted Cash [Member]
 
 
 
Reclamation And Remediation (Textuals) [Abstract]
 
 
 
Asset retirement obligation restricted assets
12 
11 
 
Advanced Projects, Research and Development (Details) (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
2008
Advanced Projects, Research and Development
 
 
 
Advanced projects, research and development
$ 216 
$ 135 
$ 166 
Hope Bay [Member] | Major projects [Member]
 
 
 
Advanced Projects, Research and Development
 
 
 
Advanced projects, research and development
74 
25 
39 
Boddington [Member] | Major projects [Member]
 
 
 
Advanced Projects, Research and Development
 
 
 
Advanced projects, research and development
25 
Other projects [Member] | Technical and project services [Member]
 
 
 
Advanced Projects, Research and Development
 
 
 
Advanced projects, research and development
49 
24 
23 
Other projects [Member] | Corporate [Member]
 
 
 
Advanced Projects, Research and Development
 
 
 
Advanced projects, research and development
29 
14 
15 
Other projects [Member] | Other Project [Member]
 
 
 
Advanced Projects, Research and Development
 
 
 
Advanced projects, research and development
40 
33 
75 
Major projects [Member] | Subika Underground [Member]
 
 
 
Advanced Projects, Research and Development
 
 
 
Advanced projects, research and development
11 
Major projects [Member] | Conga [Member]
 
 
 
Advanced Projects, Research and Development
 
 
 
Advanced projects, research and development
Major projects [Member] | Akyem [Member]
 
 
 
Advanced Projects, Research and Development
 
 
 
Advanced projects, research and development
$ 5 
$ 8 
$ 7 
Other Expense, Net (Details) (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
2008
Other Expense, Net
 
 
 
Community development
$ 111 
$ 84 
$ 87 
Regional administration
64 
55 
48 
Western Australia power plant
15 
37 
18 
World Gold Council dues
13 
11 
10 
Batu Hijau divestiture
12 
15 
Revaluation of contingent consideration
23 
Boddington aquisition costs
67 
Other
52 
69 
62 
Other expense, total
$ 261 
$ 358 
$ 240 
Other Income, Net (Details) (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
2008
Other Income, Net
 
 
 
Canadian Oil Sands Trust distributions
$ 55 
$ 26 
$ 110 
Gain on asset sales, net
48 
16 
42 
Income from developing projects, net
18 
12 
Gain on sale of investments, net
16 
30 
European Gold Refinery income
14 
14 
Interest income
11 
16 
29 
Impairment of marketable securities
(1)
(6)
(114)
Foreign currency exchange losses, net
(64)
(1)
(12)
Other
12 
11 
22 
Total
$ 109 
$ 88 
$ 123 
Stock Based Compensation (Details)
In Millions, except Share data, unless otherwise specified
Year Ended
Dec. 31,
2010
2009
2008
2007
2006
Black-Scholes option-pricing model assumptions [Abstract]
 
 
 
 
 
Weighted-average risk-free interest rate
0.025 
0.02 
0.031 
0.046 
0.049 
Dividend yield
0.007 
0.01 
0.01 
0.01 
0.007 
Expected life in years
Volatility
0.38 
0.36 
0.3 
0.32 
0.34 
Stock options activity [Abstract]
 
 
 
 
 
Outstanding at beginning of year (number of shares)
6,142,073 
6,463,004 
6,234,814 
 
 
Granted (number of shares)
918,343 
1,157,825 
1,416,963 
 
 
Exercised (number of shares)
(1,494,686)
(1,204,836)
(931,741)
 
 
Forfeited and expired (number of shares)
(151,525)
(273,920)
(257,032)
 
 
Outstanding at end of year (number of shares)
5,414,205 
6,142,073 
6,463,004 
6,234,814 
 
Options exercisable at year-end (number of shares)
3,211,115 
3,880,866 
4,464,475 
 
 
Outstanding at beginning of year (weighted-average exercise price)
42.65 
42.17 
41.09 
 
 
Granted (weighted-average exercise price)
55.68 
39.99 
40.77 
 
 
Exercised (weighted-average exercise price)
40.38 
36.24 
30.88 
 
 
Forfeited and expired (weighted-average exercise price)
51.02 
50.20 
49.17 
 
 
Oustanding at end of year (weighted-average exercise price)
45.36 
42.65 
42.17 
41.09 
 
Options exercisable at year-end (weighted-average exercise price)
45.50 
44.39 
42.01 
 
 
Weighted-average fair value of options granted during the year
20.01 
12.88 
11.96 
 
 
Stock options outstanding and exercisable [Abstract]
 
 
 
 
 
Options outstanding - Number outstanding
5,414,205 
 
 
 
 
Options outstanding - average remaining contractual life (in years)
6.6 
 
 
 
 
Options outstanding - weighted-average exercise price
45.36 
 
 
 
 
Options exercisable - number exercisable
3,211,115 
 
 
 
 
Options exercisable - weighted-average exercise price
45.50 
 
 
 
 
Stock option vesting [Abstract]
 
 
 
 
 
Stock options vested
922,463 
795,566 
835,982 
 
 
Weighted-average exercise price
42.16 
46.86 
47.21 
 
 
Stock Option and Other Stock Based Compensation
 
 
 
 
 
Stock based compensation
52 
40 
34 
 
 
Stock Based Compensation (Textuals)
 
 
 
 
 
Future stock incentive plan awards
10,516,994 
 
 
 
 
Total intrinsic value of options exercised
29 
16 
15 
 
 
Aggregate intrinsic value of outstanding stock options
87 
 
 
 
 
Aggregate intrinsic value of exercisable options
51 
 
 
 
 
Common Stock [Member]
 
 
 
 
 
Stock Option and Other Stock Based Compensation
 
 
 
 
 
Stock based compensation
 
 
Deferred Compensation, Share-based Payments [Member]
 
 
 
 
 
Stock Option and Other Stock Based Compensation
 
 
 
 
 
Stock based compensation
13 
12 
 
 
Stock Based Compensation (Textuals)
 
 
 
 
 
Stock granted
 
 
394,095 
 
 
Weighted-average fair market value of stock
 
 
44 
 
 
Stock shares unvested
106,168 
 
 
 
 
Current Year Grants [Member] | Restricted stock unit [Member]
 
 
 
 
 
Stock Based Compensation (Textuals)
 
 
 
 
 
Stock shares unvested
454,256 
 
 
 
 
Prior Year Grants [Member] | Restricted stock unit [Member]
 
 
 
 
 
Stock Based Compensation (Textuals)
 
 
 
 
 
Stock shares unvested
255,230 
 
 
 
 
Two Prior Years Grants [Member] | Restricted stock unit [Member]
 
 
 
 
 
Stock Based Compensation (Textuals)
 
 
 
 
 
Stock shares unvested
3,765 
 
 
 
 
Stock options [Member]
 
 
 
 
 
Stock Option and Other Stock Based Compensation
 
 
 
 
 
Stock based compensation
16 
14 
16 
 
 
Stock Based Compensation (Textuals)
 
 
 
 
 
Unrecognized compensation cost related to unvested stock
21 
 
 
 
 
Unvested stock options
2,203,090 
 
 
 
 
Unrecognized compensation cost expected to be recognized on a weighted-average basis, period
 
 
 
 
Restricted stock unit [Member]
 
 
 
 
 
Stock Option and Other Stock Based Compensation
 
 
 
 
 
Stock based compensation
16 
 
 
Stock Based Compensation (Textuals)
 
 
 
 
 
Stock granted
483,408 
450,195 
16,360 
 
 
Weighted-average fair market value of stock
52 
42 
39 
 
 
Performance leveraged stock units [Member]
 
 
 
 
 
Stock Option and Other Stock Based Compensation
 
 
 
 
 
Stock based compensation
 
 
Stock Based Compensation (Textuals)
 
 
 
 
 
Stock granted
204,732 
 
 
 
 
Weighted-average fair market value of stock
69 
 
 
 
 
Restricted stock [Member]
 
 
 
 
 
Stock Option and Other Stock Based Compensation
 
 
 
 
 
Stock based compensation
 
 
Stock Based Compensation (Textuals)
 
 
 
 
 
Stock granted
 
 
218,697 
 
 
Weighted-average fair market value of stock
 
 
39 
 
 
Stock shares unvested
126,391 
 
 
 
 
Financial performance common stock [Member]
 
 
 
 
 
Stock Based Compensation (Textuals)
 
 
 
 
 
Stock granted
64,646 
40,078 
 
 
 
Financial performance restricted stock units [Member]
 
 
 
 
 
Stock Based Compensation (Textuals)
 
 
 
 
 
Stock granted
129,302 
80,172 
 
 
 
Financial performance stock [Member]
 
 
 
 
 
Stock Based Compensation (Textuals)
 
 
 
 
 
Weighted-average fair market value of stock
50 
43 
 
 
 
Other Stock Based Compensation Awards [Member]
 
 
 
 
 
Stock Based Compensation (Textuals)
 
 
 
 
 
Unrecognized compensation cost related to unvested stock
25 
 
 
 
 
Unrecognized compensation cost expected to be recognized on a weighted-average basis, period
 
 
 
 
Total intrinsic fair value of other stock based compensation
28,000,000 
19,000,000 
14,000,000 
 
 
Twenty To Thirty [Member]
 
 
 
 
 
Stock options outstanding and exercisable [Abstract]
 
 
 
 
 
Options outstanding - Number outstanding
480,573 
 
 
 
 
Options outstanding - average remaining contractual life (in years)
5.6 
 
 
 
 
Options outstanding - weighted-average exercise price
26.74 
 
 
 
 
Options exercisable - number exercisable
180,573 
 
 
 
 
Options exercisable - weighted-average exercise price
26.47 
 
 
 
 
Thirty To Forty [Member]
 
 
 
 
 
Stock options outstanding and exercisable [Abstract]
 
 
 
 
 
Options outstanding - Number outstanding
1,197,686 
 
 
 
 
Options outstanding - average remaining contractual life (in years)
7.6 
 
 
 
 
Options outstanding - weighted-average exercise price
39.60 
 
 
 
 
Options exercisable - number exercisable
480,164 
 
 
 
 
Options exercisable - weighted-average exercise price
39.08 
 
 
 
 
Forty To Fifty [Member]
 
 
 
 
 
Stock options outstanding and exercisable [Abstract]
 
 
 
 
 
Options outstanding - Number outstanding
2,175,950 
 
 
 
 
Options outstanding - average remaining contractual life (in years)
5.5 
 
 
 
 
Options outstanding - weighted-average exercise price
44.62 
 
 
 
 
Options exercisable - number exercisable
1,884,578 
 
 
 
 
Options exercisable - weighted-average exercise price
44.65 
 
 
 
 
Fifty Plus [Member]
 
 
 
 
 
Stock options outstanding and exercisable [Abstract]
 
 
 
 
 
Options outstanding - Number outstanding
1,559,996 
 
 
 
 
Options outstanding - average remaining contractual life (in years)
7.6 
 
 
 
 
Options outstanding - weighted-average exercise price
56.54 
 
 
 
 
Options exercisable - number exercisable
665,800 
 
 
 
 
Options exercisable - weighted-average exercise price
57.71 
 
 
 
 
Income and Mining Taxes (Details)
In Millions
Year Ended
Dec. 31,
2010
2009
2008
Income and Mining Taxes (Textuals) [Abstract]
 
 
 
Valuation allowance that will not reduce the effective tax rate
44 
 
 
Mining taxes (net of federal benefit)
33 
27 
27 
Estimated income tax expense
856 
829 
142 
United States statutory corporate income tax rate
0.35 
0.35 
0.35 
Indonesian tax assessment tax and penalties
132 
 
 
Total gross unrecognized tax benefits
116 
130 
181 
Unrecognized tax benefit, if recognized
45 
63 
116 
Accrued income-tax-related interest and penalties
10 
13 
 
Income-tax-related interest and penalties accrued through the Statements of Consolidated Income
 
31 
Interest and penalties released
 
 
Net operating loss carryforwards
1,220 
1,213 
 
Tax credit carry forwards
168 
279 
 
Foreign tax credits
53 
158 
 
Alternative minimum tax credits
115 
121 
 
Current Income Tax Expense Benefit [Abstract]
 
 
 
Current: United States
(214)
(46)
(104)
Current: Foreign
(1,022)
(782)
(353)
Current income taxes
(1,236)
(828)
(457)
Deferred Income Tax Expense Benefit [Abstract]
 
 
 
Deferred: United States
518 
42 
246 
Deferred: Foreign
(138)
(43)
69 
Deferred income taxes
380 
(1)
315 
Income tax expense
(856)
(829)
(142)
Income From Continuing Operations Before Income and Mining Tax Expense and Other Items [Abstract]
 
 
 
Income before income and mining tax and other items
3,997 
2,954 
1,294 
Income Tax Reconciliation [Abstract]
 
 
 
Income before income and mining tax and other items
3,997 
2,954 
1,294 
United States statutory corporate income tax rate
0.35 
0.35 
0.35 
Income tax (expense) benefit computed at United States statutory corporate income tax rate
(1,399)
(1,034)
(453)
Tax benefit generated on change in form of a non-U.S. subsidiary
440 
159 
Percentage depletion
151 
127 
130 
Resolution of prior years uncertain income tax matters
11 
38 
69 
Change in valuation allowance on deferred tax assets
18 
32 
(31)
Mining taxes (net of federal benefit)
(33)
(27)
(27)
Other
(44)
35 
11 
Income tax expense
(856)
(829)
(142)
Deferred Income Tax Assets [Abstract]
 
 
 
Exploration costs
75 
72 
 
Depreciation
21 
 
Net operating losses and tax credits
799 
980 
 
Retiree benefit and vacation accrual costs
98 
124 
 
Reclamation and remediation costs
158 
132 
 
Investment in partnerships
563 
57 
 
Other
103 
64 
 
Deferred tax assets gross
1,802 
1,450 
 
Valuation allowance
(435)
(437)
 
Deferred tax assets net
1,367 
1,013 
 
Deferred Income Tax Liabilties [Abstract]
 
 
 
Net undistributed earnings of subsidiaries
(237)
(218)
 
Unrealized gain on investments
(176)
(137)
 
Depletable and amortizable costs associated with mineral rights
(857)
(826)
 
Derivative instruments
(25)
(37)
 
Other
(1)
 
Deferred tax liabilities
(1,295)
(1,219)
 
Net deferred income tax assets (liabilities)
72 
(206)
 
Deferred Tax Assets Liabilities Net Abstract
 
 
 
Current deferred income tax assets
177 
215 
 
Long-term deferred income tax assets
1,437 
937 
 
Long-term deferred income tax liabilities
(54)
(17)
 
Long-term deferred income tax liabilities
(1,488)
(1,341)
 
Net deferred income tax assets (liabilities)
72 
(206)
 
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward
 
 
 
Total amount of gross unrecognized tax benefits at beginning of year
130 
181 
230 
Additions for tax positions of prior years
(21)
29 
Additions for tax positions of current year
50 
Reductions due to settlements with taxing authorities
(9)
(27)
(57)
Reductions due to lapse of statute of limitations
(8)
(6)
(71)
Total amount of gross unrecognized tax benefits at end of year
116 
130 
181 
Deferred Tax Liability Not Recognized [Line Items]
 
 
 
Cumulative amount of temporary differences related to investments in foreign subsidiaries
117 
 
Domestic Country Member
 
 
 
Income From Continuing Operations Before Income and Mining Tax Expense and Other Items [Abstract]
 
 
 
Income before income and mining tax and other items
737 
291 
563 
Income Tax Reconciliation [Abstract]
 
 
 
Income before income and mining tax and other items
737 
291 
563 
Foreign Country Member
 
 
 
Income and Mining Taxes (Textuals) [Abstract]
 
 
 
Net operating loss carryforwards
857 
1,020 
 
Income From Continuing Operations Before Income and Mining Tax Expense and Other Items [Abstract]
 
 
 
Income before income and mining tax and other items
3,260 
2,663 
731 
Income Tax Reconciliation [Abstract]
 
 
 
Income before income and mining tax and other items
3,260 
2,663 
731 
Corporate [Member]
 
 
 
Income and Mining Taxes (Textuals) [Abstract]
 
 
 
Indonesian tax assessment tax and penalties
119 
 
 
High Range [Member]
 
 
 
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]
 
 
 
Decrease in net unrecognized income tax benefits
 
 
Low Range [Member]
 
 
 
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items]
 
 
 
Decrease in net unrecognized income tax benefits
 
 
Equity Income (Loss) of Affiliates (Details) (USD $)
In Millions
Year Ended
Dec. 31, 2010
Equity Method Investment Financial Statement Reported Amounts [Abstract]
 
Equity income (loss) of affiliates
$ 3 
AGR Matthey Joint Venture [Member]
 
Equity Method Investment Financial Statement Reported Amounts [Abstract]
 
Equity income (loss) of affiliates
Equity Income Loss of Affiliates Textuals Abstract
 
Newmont equity interest ownership
0.4 
Consideration from AGR dissolution
14 
Gain from AGR dissolution
Dividends from AGR
Regis [Member]
 
Equity Method Investment Financial Statement Reported Amounts [Abstract]
 
Equity income (loss) of affiliates
La Zanja [Member]
 
Equity Method Investment Financial Statement Reported Amounts [Abstract]
 
Equity income (loss) of affiliates
10 
Equity Income Loss of Affiliates Textuals Abstract
 
Newmont equity interest ownership
0.4694 
Euronimba [Member]
 
Equity Method Investment Financial Statement Reported Amounts [Abstract]
 
Equity income (loss) of affiliates
$ (10)
Equity Income Loss of Affiliates Textuals Abstract
 
Newmont equity interest ownership
0.435 
BHP Billiton [Member]
 
Equity Income Loss of Affiliates Textuals Abstract
 
Equity investment remaining ownership interests
0.435 
Areva [Member]
 
Equity Income Loss of Affiliates Textuals Abstract
 
Equity investment remaining ownership interests
0.13 
Discontinued Operations (Details) (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
2008
Discontinued Operations (Textuals) [Abstract]
 
 
 
Income (loss) from discontinued operations
$ (28)
$ (16)
$ 13 
Discontinued operation income statement [Abstract]
 
 
 
Sales
 
32 
75 
Income (loss) from operations
 
(3)
Nonoperating gain (loss)
(40)
(44)
Pre-tax income (loss)
(40)
(43)
(2)
Income tax benefit
12 
27 
15 
Income (loss) from discontinued operations
(28)
(16)
13 
Net cash provided from (used in) discontinued operations [Abstract]
 
 
 
Income (loss) from discontinud operations
28 
16 
(13)
Amortization
Deferred income taxes
(12)
(28)
Impairment of assets held for sale
44 
Other operating adjustments and write-downs
19 
Increase (decrease) in net operating liabilities
27 
23 
(149)
Net cash (used in) provided from discontinued operations
(13)
33 
(104)
Net cash used in investing activities of discontinued operations [Abstract]
 
 
 
Proceeds from asset sales, net
(6)
Additions to property, plant and mine development
(5)
Net cash used in investing activities of discontinued operations
(11)
Net cash used in financing activities of discontinued operations [Abstract]
 
 
 
Repayment of debt
(2)
(4)
Net cash used in financing activities of discontinued operations
(2)
(4)
Kori Kollo [Member]
 
 
 
Discontinued operation income statement [Abstract]
 
 
 
Income (loss) from operations
 
(9)
Other Discontinued Operations [Member]
 
 
 
Discontinued operation income statement [Abstract]
 
 
 
Income (loss) from operations
 
 
Net Income Attributable to Noncontrolling Interests (Details) (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
2008
Net Income Attributable to Noncontrolling Interests Textuals Abstract
 
 
 
Sale and transfer of shares of interest in PTNNT, percent
0.07 
0.17 
 
Share transfers gains
16 
63 
 
Share transfers gains tax
33 
115 
 
Additional effective economic interest in PTNNT, In percent
0.17 
 
 
Noncontrolling interest, ownership percentage by noncontrolling owners
0.2 
 
 
Ownership interest in subsidiaries
0.56 
0.63 
0.8 
Other
(2)
(3)
(1)
Net income attributable to noncontrolling interests
839 
796 
329 
PTIMI [Member]
 
 
 
Net Income Attributable to Noncontrolling Interests Textuals Abstract
 
 
 
Noncontrolling interest, ownership percentage by noncontrolling owners
0.022 
 
 
Compania de Minas Buenaventura SAA [Member]
 
 
 
Net Income Attributable to Noncontrolling Interests Textuals Abstract
 
 
 
Noncontrolling interest, ownership percentage by noncontrolling owners
0.4365 
 
 
International Finance Corporation [Member]
 
 
 
Net Income Attributable to Noncontrolling Interests Textuals Abstract
 
 
 
Noncontrolling interest, ownership percentage by noncontrolling owners
0.05 
 
 
Batu Hijau [Member]
 
 
 
Net Income Attributable to Noncontrolling Interests Textuals Abstract
 
 
 
Effective economic interest percent
0.485 
 
 
Net income attributable to noncontrolling interests
549 
445 
98 
Yanacocha [Member]
 
 
 
Net Income Attributable to Noncontrolling Interests Textuals Abstract
 
 
 
Ownership interest in subsidiaries
0.5135 
 
 
Net income attributable to noncontrolling interests
292 
354 
232 
Newmont Mining Corporation [Member]
 
 
 
Net Income Attributable to Noncontrolling Interests Textuals Abstract
 
 
 
Net income attributable to noncontrolling interests
$ 0 
$ 0 
$ 0 
Newmont Equity and Income Per Share (Details) (USD $)
Share data in Millions, except Per Share data
Year Ended
Dec. 31,
2010
2009
2008
Earnings per share reconciliation [Abstract]
 
 
 
Continuing operations
$ 2,305,000,000 
$ 1,308,000,000 
$ 816,000,000 
Discontinued operations
(28,000,000)
(11,000,000)
15,000,000 
Net income attributable to Newmont common stockholders
2,277,000,000 
1,297,000,000 
831,000,000 
Weighted average common shares (millions):
 
 
 
Basic
492 
487 
454 
Effect of employee stock based awards
Effect of convertible notes
Diluted
500 
487 
455 
Net income attributable to Newmont stockholders per common share, basic
 
 
 
Continuing operations
4.69 
2.68 
1.80 
Discontinued operations
(0.06)
(0.02)
0.03 
Earnings per share basic
4.63 
2.66 
1.83 
Net income attributable to Newmont stockholders per common share, diluted
 
 
 
Continuing operations
4.61 
2.68 
1.80 
Discontinued operations
(0.06)
(0.02)
0.03 
Earnings per share diluted
4.55 
2.66 
1.83 
Net income attributable to Newmont stockholders and transfers from noncontrolling interest [Abstract]
 
 
 
Net income attributable to Newmont stockholders
2,277,000,000 
1,297,000,000 
831,000,000 
Transfers from noncontrolling interests:
 
 
 
Increase in Additional paid in capital from sale of PTNNT shares, net of tax of $33 and $115, respectively
16,000,000 
63,000,000 
Net income attributable to Newmont stockholders and transfers from noncontrolling interests
2,293,000,000 
1,360,000,000 
831,000,000 
Income Per Common Share (Textuals) Abstract
 
 
 
Anti-dilutive shares - stock options
Options to purchase common shares average exercise price
$ 57 
$ 47 
$ 48 
Anti-dilutive shares - convertible notes
Share transfers gains tax
33,000,000 
115,000,000 
 
Convertible Senior Notes Net Of Discount 2012 [Member]
 
 
 
Income Per Common Share (Textuals) Abstract
 
 
 
Conversion price on convertible notes
46.18 
 
 
Convertible notes common stock
11,206,150 
 
 
Convertible Senior Notes Net Of Discount 2014 And 2017 [Member]
 
 
 
Income Per Common Share (Textuals) Abstract
 
 
 
Conversion price on convertible notes
46.13 
 
 
Conversion price on call spread transaction
60.17 
 
 
Convertible notes common stock
24,929,547 
 
 
Acquisitions (Details)
In Millions
Year Ended
Dec. 31,
2010
2009
Dec. 31, 2010
Jun. 25, 2009
Dec. 31, 2008
Assets:
 
 
 
 
 
Cash
 
 
 
 
Property, plant and mine development, net
1,073 
 
 
 
 
Inventories and stockpiles
 
 
 
 
Other assets
11 
 
 
 
 
Totals assets
1,092 
 
 
 
 
Liabilities
 
 
 
 
 
Accrued liabilities
33 
 
 
 
 
Reclamation liabilities
15 
 
 
 
 
Total liabilities
48 
 
 
 
 
Net assets acquired
1,044 
 
 
 
 
Business Acquisition (Textuals) [Abstract]
 
 
 
 
 
Boddington final interest acquired
 
 
0.3333 
 
 
Acquisition consideration
 
 
982 
 
318 
Contingent consideration cap
 
 
100 
 
 
Contingent consideration arrangements basis for amount
equal to 50% of the average realized operating margin (Revenue less Costs applicable to sales on a by-product basis), if any, exceeding $600 per ounce, payable quarterly beginning in the second quarter of 2010 on one-third of gold sales from Boddington. 
 
 
 
 
Fair value of contingent consideration
 
85 
83 
62 
 
Aquisition transaction costs
67 
 
 
 
Aquisition transaction costs paid
 
 
15 
 
 
Contingent consideration cash paid
 
 
 
 
Contingent consideration range low
 
 
 
 
Contingent consideration range high
 
 
96 
 
 
Fair Value Accounting (Details)
In Millions
Year Ended
Dec. 31,
2010
2009
Assets:
 
 
Cash equivalents
2,316 
 
Derivative instruments, net:
 
 
Fair value assets measured on recurring basis
4,653 
 
Unrealized gain
 
Assets measured at fair value hierarchy, percent
0.01 
 
Liabilities measured at fair value hierarchy, percent
0.27 
 
Changes in the Fair Value of the Company's Level 3 Financial Assets
 
 
Balance at beginning of period, assets
23 
 
Unrealized gain
 
Balance at end of period, assets
24 
23 
Liabilities:
 
 
Fair Value Liabilities Measured On Recurring Basis
311 
 
Fair Value Liabilities Measured On Recurring Basis Financial Statement (Textuals) [Abstract]
 
 
Revaluation
 
Changes in the Fair Value of the Company's Level 3 Financial Liabilities
 
 
Balance at beginning of period, liabilities
83 
85 
Revaluation
 
Settlements
(4)
 
Balance at end of period, liabilities
83 
85 
Debenture [Member]
 
 
Liabilities:
 
 
8 5/8% debentures ($222 hedged portion)
228 
 
Boddington Contingent Consideration [Member]
 
 
Liabilities:
 
 
Boddington contingent consideration
83 
 
Fair Value Liabilities Measured On Recurring Basis Financial Statement (Textuals) [Abstract]
 
 
Revaluation
 
Changes in the Fair Value of the Company's Level 3 Financial Liabilities
 
 
Balance at beginning of period, liabilities
83 
85 
Revaluation
 
Settlements
(4)
 
Balance at end of period, liabilities
83 
85 
Level 1 [Member]
 
 
Assets:
 
 
Cash equivalents
2,316 
 
Derivative instruments, net:
 
 
Fair value assets measured on recurring basis
4,317 
 
Level 1 [Member] | Marketable equity securities [Member] | Other Industries [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
 
Marketable debt securities:
 
 
Marketable Debt securities
 
Level 1 [Member] | Marketable equity securities [Member] | Extractive industries [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
1,573 
 
Marketable debt securities:
 
 
Marketable Debt securities
1,573 
 
Level 1 [Member] | Debt Securities [Member] | Corporate [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
10 
 
Marketable debt securities:
 
 
Marketable Debt securities
10 
 
Level 1 [Member] | Trade receivable from provisional copper and gold concentrate sales, net [Member]
 
 
Marketable debt securities:
 
 
Trade receivable from provisional copper and gold concentrate sales, net
412 
 
Level 2 [Member]
 
 
Derivative instruments, net:
 
 
Fair value assets measured on recurring basis
312 
 
Level 2 [Member] | Interest Rate Swap Contracts [Member]
 
 
Derivative instruments, net:
 
 
Derivative instruments
 
Level 2 [Member] | Diesel forward contracts [Member]
 
 
Derivative instruments, net:
 
 
Derivative instruments
 
Level 2 [Member] | Foreign exchange forward contracts [Member]
 
 
Derivative instruments, net:
 
 
Derivative instruments
301 
 
Level 3 [Member]
 
 
Derivative instruments, net:
 
 
Fair value assets measured on recurring basis
24 
 
Level 3 [Member] | Debt Securities [Member] | Asset Backed Commercial Paper [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
19 
 
Marketable debt securities:
 
 
Marketable Debt securities
19 
 
Level 3 [Member] | Auction Rate Securities [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
 
Marketable debt securities:
 
 
Marketable Debt securities
 
Level 2 [Member]
 
 
Liabilities:
 
 
Fair Value Liabilities Measured On Recurring Basis
228 
 
Level 2 [Member] | Debenture [Member]
 
 
Liabilities:
 
 
8 5/8% debentures ($222 hedged portion)
228 
 
Level 3 [Member]
 
 
Liabilities:
 
 
Fair Value Liabilities Measured On Recurring Basis
83 
 
Level 3 [Member] | Boddington Contingent Consideration [Member]
 
 
Liabilities:
 
 
Boddington contingent consideration
83 
 
Marketable equity securities [Member] | Other Industries [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
 
Marketable debt securities:
 
 
Marketable Debt securities
 
Marketable equity securities [Member] | Extractive industries [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
1,573 
 
Marketable debt securities:
 
 
Marketable Debt securities
1,573 
 
Debt Securities [Member] | Asset Backed Commercial Paper [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
19 
 
Marketable debt securities:
 
 
Marketable Debt securities
19 
 
Debt Securities [Member] | Auction Rate Securities [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
 
Marketable debt securities:
 
 
Marketable Debt securities
 
Debt Securities [Member] | Corporate [Member]
 
 
Marketable equity securities:
 
 
Marketable equity securities
10 
 
Marketable debt securities:
 
 
Marketable Debt securities
10 
 
Asset Backed Commercial Paper [Member]
 
 
Derivative instruments, net:
 
 
Unrealized gain
 
Changes in the Fair Value of the Company's Level 3 Financial Assets
 
 
Balance at beginning of period, assets
18 
 
Unrealized gain
 
Balance at end of period, assets
19 
 
Auction Rate Securities [Member]
 
 
Changes in the Fair Value of the Company's Level 3 Financial Assets
 
 
Balance at beginning of period, assets
Balance at end of period, assets
Trade receivable from provisional copper and gold concentrate sales, net [Member]
 
 
Marketable debt securities:
 
 
Trade receivable from provisional copper and gold concentrate sales, net
412 
 
Interest Rate Swap Contracts [Member]
 
 
Derivative instruments, net:
 
 
Derivative instruments
 
Diesel forward contracts [Member]
 
 
Derivative instruments, net:
 
 
Derivative instruments
 
Foreign exchange forward contracts [Member]
 
 
Derivative instruments, net:
 
 
Derivative instruments
301 
 
Derivative Instruments (Details)
In Millions, unless otherwise specified
Year Ended
Dec. 31,
Year Ended
Dec. 31,
Year Ended
Dec. 31,
Dec. 31, 2010
Year Ended
Dec. 31, 2010
Dec. 31, 2010
Year Ended
Dec. 31, 2010
Dec. 31, 2010
2010
2009
2008
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2009
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2010
Dec. 31, 2009
Dec. 31, 2009
Dec. 31, 2009
2010
2009
2008
2010
2009
2008
2010
2009
2008
2010
2009
2008
Dec. 31, 2010
Dec. 31, 2010
2009
2005
2009
Dec. 31, 2010
Diesel Derivative Contracts Outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diesel gallons
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
21,000,000 
7,000,000 
 
 
 
28,000,000 
Fair values of Derivative Instruments Designated as Hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Current and Long Term Assets
 
 
 
 
 
 
 
 
114 
53 
181 
78 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Current and Long Term Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Location and Amount of Gains (Losses) Reported in Condensed Consolidated Financial Statements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) recognized in other comprehensive income (effective portion)
 
 
 
 
 
287 
245 
(166)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11 
(18)
 
 
(10)
 
Gain (loss) reclassified from Accumulated other comprehensive income (loss) into income (effective portion)
 
 
 
 
 
92 
(6)
(17)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(11)
(4)
 
 
 
 
 
 
Gains (Losses) Recorded for Hedged Item Related to Fair Value Hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) recognized in income (effective portion)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
(2)
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) recognized in income (ineffective portion)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3)
(4)
(3)
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Instruments (Textuals) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) recognized in other comprehensive income (effective portion)
 
 
 
 
 
287 
245 
(166)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11 
(18)
 
 
(10)
 
Fixed to floating swap contracts, amount
222 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed rate interest payments received
0.0863 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Spread rate, minimum
0.026 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Spread rate, maximum
0.0763 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Approximate gain amount to be reclassified from accumulated other comprehensive income, net of tax to income
135 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average price
 
1,225 
 
3.43 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recorded average provisional price
 
1,224 
 
3.42 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provisional pricing mark-to-market gain (loss)
 
41 
 
120 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provisional pricing mark-to-market gain (loss) rate
 
 
0.22 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provisional pricing quantity sales
 
 
105,000 
 
111,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average price, subject to final pricing
 
 
1,411 
 
4.40 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments (Details)
In Millions
Year Ended
Dec. 31,
Year Ended
Dec. 31,
Year Ended
Dec. 31,
2010
2009
Dec. 31, 2010
2010
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
2010
2009
Dec. 31, 2010
Dec. 31, 2009
Year Ended
Dec. 31, 2010
Dec. 31, 2009
2010
2009
2010
2010
Investment in Marketable Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost/Equity Basis
 
 
 
19 
10 
24 
15 
25 
24 
39 
39 
308 
292 
78 
74 
23 
39 
15 
448 
381 
 
 
 
 
555 
454 
 
 
Unrealized Gain
 
 
 
54 
35 
12 
89 
41 
508 
584 
325 
136 
148 
29 
37 
18 
1,018 
738 
 
 
 
 
1,021 
740 
 
 
Unrealized Loss
 
 
 
(6)
(6)
(2)
(2)
(8)
(8)
 
 
 
 
(8)
(8)
 
 
Fair/Equity Basis - Current Marketable Equity Securities
 
 
 
59 
54 
22 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
34 
 
 
 
 
 
 
 
 
 
 
 
 
Fair/Equity Basis - Long-Term Marketable Debt Securities
 
 
 
 
 
 
 
 
19 
18 
10 
10 
34 
33 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair/Equity Basis - Long-Term Marketable Equity Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
816 
876 
403 
210 
171 
 
76 
33 
1,466 
1,119 
 
 
 
 
 
 
 
 
Current investments
113 
56 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other investments, at cost
11 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity Method Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
57 
 
20 
 
 
 
 
Long-term investments
1,568 
1,186 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available For Sale Securities Continuous Unrealized Loss Position Aggregate Losses [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities continuous unrealized losses less than 12 months - unrealized losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities continuous unrealized losses greater than 12 months - unrealized losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities continuous unrealized losses - unrealized losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available For Sale Securities Continuous Unrealized Loss Position Fair Value Abstract
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities continuous unrealized losses less than 12 months - fair value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities continuous unrealized losses greater than 12 months - fair value
24 
23 
 
 
 
 
 
 
19 
18 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities continuous unrealized losses - fair value
24 
23 
 
 
 
 
 
 
19 
18 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments (Textuals) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset retirement obligation restricted assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10 
10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares received in exchanges for warrants or options
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consideration to exercise warrants or options
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Warrants or options outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regis convertible notes
 
 
10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regis converted shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regis gain on conversion
16 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Newmont equity interest ownership
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.4 
 
 
 
 
 
Dividends from AGR
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
14 
 
 
 
 
 
Gain from AGR dissolution
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impairment of marketable securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payments to Acquire Marketable Securities
28 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15 
Securities continuous unrealized losses - unrealized losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventories (Details) (USD $)
In Millions
Dec. 31, 2010
Dec. 31, 2009
Summary of Inventories
 
 
In-process
$ 142 
$ 80 
Concentrate
111 
10 
Precious metals
Materials, supplies and other
401 
394 
Total Inventories
$ 658 
$ 493 
Stockpiles and Ore on Leach Pads (Details) (USD $)
In Millions
Dec. 31, 2010
Dec. 31, 2009
Current:
 
 
Stockpiles
$ 389 
$ 206 
Ore on leach pads
228 
197 
Total
617 
403 
Long-term:
 
 
Stockpiles
1,397 
1,181 
Ore On leach pads
360 
321 
Total
$ 1,757 
$ 1,502 
Other Assets (Details) (USD $)
In Millions
Dec. 31, 2010
Dec. 31, 2009
Other current assets:
 
 
Refinery metal inventory and receivable
$ 617 
$ 671 
Derivative instruments
196 
92 
Other prepaid assets
65 
70 
Other
84 
67 
Other current assets, total
962 
900 
Other long-term assets:
 
 
Goodwill
188 
188 
Income tax receivable
119 
Derivative instruments
116 
59 
Intangible assets
91 
29 
Debt issuance costs
39 
50 
Restricted cash
25 
70 
Other receivables
19 
16 
Other
144 
70 
Other long-term assets, total
$ 741 
$ 482 
Property, Plant and Mine Development (Details) (USD $)
In Millions, unless otherwise specified
Year Ended
Dec. 31,
2010
2009
Property Plant And Equipment [Line Items]
 
 
Net Book Value
$ 12,907 
$ 12,370 
Mineral Interests Cost
3,463 
3,380 
Mineral Interests Accumulated Amortization
(667)
(608)
Mineral Interests Net Book Value
2,796 
2,772 
Property Plant and Mine Development (Textuals)
 
 
Write-down of property, plant and mine development
Land [Member]
 
 
Property Plant And Equipment [Line Items]
 
 
Cost
118 
111 
Accumulated Amortization
Net Book Value
118 
111 
Facilities and Equipment [Member]
 
 
Property Plant And Equipment [Line Items]
 
 
Depreciable Life Minimum
 
Depreciable Life Maximum
27 
 
Cost
12,424 
12,099 
Accumulated Amortization
(5,460)
(4,816)
Net Book Value
6,964 
7,283 
Mine Development [Member]
 
 
Property Plant And Equipment [Line Items]
 
 
Depreciable Life Minimum
 
Depreciable Life Maximum
27 
 
Cost
3,217 
2,696 
Accumulated Amortization
(1,445)
(1,181)
Net Book Value
1,772 
1,515 
Mineral Interests [Member]
 
 
Property Plant And Equipment [Line Items]
 
 
Depreciable Life Minimum
 
Depreciable Life Maximum
27 
 
Asset Retirement Obligation Costs [Member]
 
 
Property Plant And Equipment [Line Items]
 
 
Depreciable Life Minimum
 
Depreciable Life Maximum
27 
 
Cost
638 
462 
Accumulated Amortization
(238)
(210)
Net Book Value
400 
252 
Construction In Progress [Member]
 
 
Property Plant And Equipment [Line Items]
 
 
Cost
857 
437 
Accumulated Amortization
Net Book Value
857 
437 
Production Stage [Member]
 
 
Property Plant And Equipment [Line Items]
 
 
Depreciable Life Minimum
 
Depreciable Life Maximum
27 
 
Mineral Interests Cost
1,235 
1,207 
Mineral Interests Accumulated Amortization
(660)
(601)
Mineral Interests Net Book Value
575 
606 
Development Stage [Member]
 
 
Property Plant And Equipment [Line Items]
 
 
Mineral Interests Cost
149 
155 
Mineral Interests Accumulated Amortization
Mineral Interests Net Book Value
149 
155 
Exploration Stage [Member]
 
 
Property Plant And Equipment [Line Items]
 
 
Depreciable Life Minimum
 
Depreciable Life Maximum
27 
 
Mineral Interests Cost
2,079 
2,018 
Mineral Interests Accumulated Amortization
(7)
(7)
Mineral Interests Net Book Value
2,072 
2,011 
Leased assets included above in facilities and equipment [Member]
 
 
Property Plant And Equipment [Line Items]
 
 
Depreciable Life Minimum
 
Depreciable Life Maximum
25 
 
Cost
421 
421 
Accumulated Amortization
(289)
(275)
Net Book Value
132 
146 
Total North America [Member]
 
 
Property Plant and Mine Development (Textuals)
 
 
Construction-in-progress
252 
65 
Total South America [Member]
 
 
Property Plant and Mine Development (Textuals)
 
 
Construction-in-progress
266 
85 
Total Asia Pacific [Member]
 
 
Property Plant and Mine Development (Textuals)
 
 
Construction-in-progress
222 
103 
Total Africa [Member]
 
 
Property Plant and Mine Development (Textuals)
 
 
Construction-in-progress
$ 84 
$ 168 
Debt (Details) (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
Debt
 
 
Total Debt Current
$ 259 
$ 157 
Total Debt Non-Current
4,182 
4,652 
Notes Payable Abstract
 
 
Additional paid-in capital
8,279 
8,158 
Debt (Textuals)
 
 
Repayments under project financing facility
220 
 
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months
259 
 
Long-term Debt, Maturities, Repayments of Principal in Year Two
559 
 
Long-term Debt, Maturities, Repayments of Principal in Year Three
42 
 
Long-term Debt, Maturities, Repayments of Principal in Year Four
533 
 
Long-term Debt, Maturities, Repayments of Principal in Year Five
18 
 
Long-term Debt, Maturities, Repayments of Principal after Year Five
3,030 
 
Fixed to floating swap contracts, amount
222 
 
Fixed rate interest payments received
0.0863 
 
Spread rate, minimum
0.026 
 
Spread rate, maximum
0.0763 
 
Uncollateralized revolving credit facility
2,000 
 
Corporate revolving credit interest rate description
Borrowings under the facilities bear interest at an annual interest rate of LIBOR plus a margin of 0.28% or the lead bank’s prime interest rate. 
 
Corporate revolving credit facility commitment fees description
The margin adjusts as the Company’s credit rating changes. Facility fees accrue at an annual rate of 0.07% of the aggregate commitments. The Company also pays a utilization fee of 0.05% on the amount of revolving credit loans and letters of credit outstanding under the facility for each day on which the sum of such loans and letters of credit exceed 50% of the commitments under the facility. 
 
Corporate revolving credit facility amount outstanding
153 
452 
Interest expense
279 
120 
PTNNT project financing facility installments
43 
 
Convertible Senior Notes Net Of Discount 2012 [Member]
 
 
Debt
 
 
Convertible senior notes, net of discount
488 
463 
Notes Payable Abstract
 
 
Additional paid-in capital
46 
46 
Principal amount
518 
518 
Unamortized debt discount
(30)
(55)
Net carrying amount
488 
463 
Debt (Textuals)
 
 
Interest rate, percentage
0.03 
 
Effective interest rate
0.085 
 
Estimated fair value
668 
580 
Net proceeds
504 
 
Convertible notes
518 
518 
Convertible notes if-converted value
117 
 
Convertible Senior Notes Net Of Discount 2012 [Member] | Non-Current [Member]
 
 
Debt
 
 
Convertible senior notes, net of discount
488 
463 
Notes Payable Abstract
 
 
Net carrying amount
488 
463 
Convertible Senior Notes Net Of Discount 2014 [Member]
 
 
Debt
 
 
Convertible senior notes, net of discount
489 
468 
Notes Payable Abstract
 
 
Additional paid-in capital
97 
97 
Principal amount
575 
575 
Unamortized debt discount
(86)
(107)
Net carrying amount
489 
468 
Debt (Textuals)
 
 
Effective interest rate
0.06 
 
Estimated fair value
697 
584 
Convertible notes
575 
575 
Convertible notes if-converted value
130 
 
Convertible Senior Notes Net Of Discount 2014 [Member] | Non-Current [Member]
 
 
Debt
 
 
Convertible senior notes, net of discount
489 
468 
Notes Payable Abstract
 
 
Net carrying amount
489 
468 
Convertible Senior Notes Net Of Discount 2017 [Member]
 
 
Debt
 
 
Convertible senior notes, net of discount
434 
417 
Notes Payable Abstract
 
 
Additional paid-in capital
123 
123 
Principal amount
575 
575 
Unamortized debt discount
(141)
(158)
Net carrying amount
434 
417 
Debt (Textuals)
 
 
Effective interest rate
0.0625 
 
Estimated fair value
627 
517 
Convertible notes
575 
575 
Convertible notes if-converted value
130 
 
Convertible Senior Notes Net Of Discount 2017 [Member] | Non-Current [Member]
 
 
Debt
 
 
Convertible senior notes, net of discount
434 
417 
Notes Payable Abstract
 
 
Net carrying amount
434 
417 
Convertible Senior Notes Net Of Discount 2014 And 2017 [Member]
 
 
Notes Payable Abstract
 
 
Principal amount
1,150 
 
Debt (Textuals)
 
 
Net proceeds
1,126 
 
Convertible notes
1,150 
 
Convertible Senior Notes Net Of Discount [Member]
 
 
Debt (Textuals)
 
 
Interest expense
32 
30 
Amortization of debt discount
63 
56 
Debt instrument maturity date description
The remaining unamortized debt discount is amortized over the remaining two, four and seven year periods of the 2012, 2014 and 2017 convertible senior notes, respectively. 
 
Senior Notes Net Of Discount Due 2019 [Member]
 
 
Debt (Textuals)
 
 
Interest rate, percentage
0.0513 
 
Principal amount
900 
 
Estimated fair value
984 
901 
Net proceeds
895 
 
Senior Notes Net Of Discount Due 2019 [Member] | Non-Current [Member]
 
 
Debt
 
 
Senior notes, net of discount
896 
896 
Senior Notes Net Of Discount Due 2035 [Member]
 
 
Debt (Textuals)
 
 
Interest rate, percentage
0.05875 
 
Principal amount
600 
 
Estimated fair value
624 
566 
Senior Notes Net Of Discount Due 2035 [Member] | Non-Current [Member]
 
 
Debt
 
 
Senior notes, net of discount
598 
597 
Senior Notes Net Of Discount Due 2039 [Member]
 
 
Debt
 
 
Senior notes, net of discount
1,087 
1,087 
Debt (Textuals)
 
 
Interest rate, percentage
0.0625 
 
Principal amount
1,100 
 
Estimated fair value
1,189 
1,080 
Net proceeds
1,080 
 
Yanacocha [Member]
 
 
Debt (Textuals)
 
 
Principal amount
100 
 
Yanacocha [Member] | Current [Member]
 
 
Debt
 
 
Yanacocha credit facility and senior notes
22 
Yanacocha [Member] | Non-Current [Member]
 
 
Debt
 
 
Yanacocha credit facility and senior notes
140 
Sale-Leaseback of Refractory Ore Treatment Plant [Member]
 
 
Debt (Textuals)
 
 
Minimum Lease Payments Sale Leaseback Transactions
190 
226 
Minimum Lease Payments Sale Leaseback Transactions Within One Year
39 
 
Minimum Lease Payments Sale Leaseback Transactions Within Two Years
70 
 
Minimum Lease Payments Sale Leaseback Transactions Within Three Years
36 
 
Minimum Lease Payments Sale Leaseback Transactions Within Four Years
36 
 
Minimum Lease Payments Sale Leaseback Transactions Within Five Years
 
Interest rate, percentage
0.0636 
 
Effective interest rate
0.0615 
 
Sale-leaseback hedging contracts gain
11 
 
Sale-Leaseback of Refractory Ore Treatment Plant [Member] | Current [Member]
 
 
Debt
 
 
Sale-leaseback of refractory ore treatment plant
30 
24 
Sale-Leaseback of Refractory Ore Treatment Plant [Member] | Non-Current [Member]
 
 
Debt
 
 
Sale-leaseback of refractory ore treatment plant
134 
164 
Senior Notes 8 5/8% [Member]
 
 
Debt (Textuals)
 
 
Interest rate, percentage
0.0863 
 
Principal amount
223 
 
Estimated fair value
228 
242 
Senior Notes 8 5/8% [Member] | Current [Member]
 
 
Debt
 
 
8 5/8% debentures, net of discount (due 2011)
217 
 
Senior Notes 8 5/8% [Member] | Non-Current [Member]
 
 
Debt
 
 
8 5/8% debentures, net of discount (due 2011)
 
218 
International Finance Corporation [Member]
 
 
Debt (Textuals)
 
 
Principal amount
75 
 
Commercial Lender [Member]
 
 
Debt (Textuals)
 
 
Principal amount
10 
 
NGGL [Member]
 
 
Debt (Textuals)
 
 
Principal amount
85 
 
Debt instrument interest rate terms
Borrowings bear interest of LIBOR plus 3.5%. 
 
Current [Member]
 
 
Debt
 
 
PTNNT project financing facility
 
87 
Ahafo project facility
10 
10 
Other capital leases
14 
Debt (Textuals)
 
 
PTNNT project financing facility
 
87 
Non-Current [Member]
 
 
Debt
 
 
PTNNT project financing facility
 
133 
Ahafo project facility
55 
65 
Other capital leases
Debt (Textuals)
 
 
PTNNT project financing facility
 
133 
Other Liabilities (Details) (USD $)
In Millions
Dec. 31, 2010
Dec. 31, 2009
Other current liabilities:
 
 
Refinery metal payable
$ 617 
$ 671 
Accrued operating costs
217 
131 
Taxes other than income and mining
135 
73 
Royalties
90 
58 
Accrued capital expenditures
83 
115 
Interest
66 
72 
Reclamation and remediation liabilities
64 
54 
Deferred income tax
54 
17 
Boddington contingent consideration
32 
16 
Other
60 
110 
Other current liabilities, total
1,418 
1,317 
Other long-term liabilities
 
 
Boddington contingent consideration
51 
69 
Power supply agreements
45 
Income and mining taxes
36 
38 
Other
89 
80 
Other long-term liabilities, total
$ 221 
$ 187 
Accumulated Other Comprehensive Income (Details) (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
Accumulated Other Comprehensive Income [Line Items]
 
 
Unrealized gain on marketable securities net of tax expense
$ 902 
$ 635 
Foreign currency translation adjustments
155 
57 
Changes in fair value of cash flow hedge instruments net of tax expense and noncontrolling interests
216 
86 
Accumulated other comprehensive income
1,108 
626 
Accumulated Other Comprehensive Income (Textuals)
 
 
Tax on unrealized gain on marketable securities
200 
138 
Tax on Changes in fair value of cash flow hedge instruments
97 
38 
Pension benefit costs [Member]
 
 
Accumulated Other Comprehensive Income [Line Items]
 
 
Pension liability and other post-retirement benefit adjustments net of tax expense
(176)
(161)
Accumulated Other Comprehensive Income (Textuals)
 
 
Tax on pension liability and other post-retirement benefits adjustments
(95)
(86)
Other benefit costs [Member]
 
 
Accumulated Other Comprehensive Income [Line Items]
 
 
Pension liability and other post-retirement benefit adjustments net of tax expense
11 
Accumulated Other Comprehensive Income (Textuals)
 
 
Tax on pension liability and other post-retirement benefits adjustments
$ 6 
$ 4 
Related Party Transactions (Details) (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
2008
Related Party Transactions (Details) [Abstract]
 
 
 
Gold and silver sales
$ 3 
$ 10 
$ 10 
Refining fees paid
$ 0 
$ 3 
$ 3 
Net Change in Operating Assets and Liabilities (Details) (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
2008
Decrease (increase) in operating assets:
 
 
 
Trade and accounts receivable
$ (153)
$ 42 
$ 81 
Inventories, stockpiles and ore on leach pads
(501)
(378)
(343)
EGR refinery assets
116 
(508)
38 
Other assets
(87)
(19)
(208)
Increase (decrease) in operating liabilities:
 
 
 
Accounts payable and other accrued liabilities
38 
177 
(54)
EGR refinery liabilities
(116)
508 
(38)
Reclamation liabilities
(51)
(49)
(103)
Net change in operating assets and liabilities
$ (754)
$ (227)
$ (627)
Supplemental Cash Flow Information (Details) (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
2008
Supplemental Cash Flow Information Activities [Abstract]
 
 
 
Income and mining taxes, net of refunds
$ 1,185 
$ 431 
$ 816 
Pension plan and other benefit contributions
163 
58 
76 
Interest, net of amounts capitalized
228 
117 
96 
Yanacocha [Member]
 
 
 
Supplemental Cash Flow Information (Textuals) [Abstract]
 
 
 
Non-cash increases to Property, plant and mine development, net and Long-term debt
 
 
12 
Nevada [Member]
 
 
 
Supplemental Cash Flow Information (Textuals) [Abstract]
 
 
 
Non-cash increases to Property, plant and mine development, net and Long-term debt
 
 
Operating Lease Commitments (Details) (USD $)
In Millions
Year Ended
Dec. 31,
2010
2009
2008
Operating Leases Future Minimum Payments Due [Abstract]
 
 
 
Operating leases future minimum payments due - Current
26 
 
 
Operating leases future minimum payments due - Year 2
23 
 
 
Operating leases future minimum payments due - Year 3
18 
 
 
Operating leases future minimum payments due - Year 4
 
 
Operating leases future minimum payments due - Year 5
 
 
Operating leases future minimum payments due - Thereafter
30 
 
 
Operating leases future minimum payments due - Total
113 
 
 
Rent expense
$ 46 
$ 48 
$ 36 
Condensed Consolidating Financial Statements (Details) (USD $)
In Millions
3 Months Ended
Dec. 31,
Year Ended
Dec. 31,
2010
2009
2010
2009
2008
Condensed Consolidating Statement of Income
 
 
 
 
 
Sales
$ 2,548 
$ 2,518 
$ 9,540 
$ 7,705 
$ 6,124 
Costs and expenses
 
 
 
 
 
Costs applicable to sales (1)
 
 
3,484 1
3,008 1
3,038 1
Amortization
 
 
945 
806 
738 
Reclamation and remediation
 
 
65 
59 
142 
Exploration
 
 
218 
187 
213 
Advanced projects, research and development
 
 
216 
135 
166 
General and administrative
 
 
178 
159 
144 
Write-down of property, plant and mine development
 
 
137 
Other expense, net
 
 
261 
358 
240 
Total costs and expenses
 
 
5,373 
4,719 
4,818 
Other income (expense)
 
 
 
 
 
Other income, net
 
 
109 
88 
123 
Interest income-intercompany
 
 
Interest expense-intercompany
 
 
Interest expense, net of capitalized interest of $21, $111 and $47, respectively
 
 
(279)
(120)
(135)
Total other income (expense)
 
 
(170)
(32)
(12)
Income before income and mining tax and other items
 
 
3,997 
2,954 
1,294 
Income and mining tax expense
 
 
(856)
(829)
(142)
Equity income (loss) of affiliates
 
 
(16)
(5)
Income from continuing operations
 
 
3,144 
2,109 
1,147 
Income from discontinued operations
 
 
(28)
(16)
13 
Net income
 
 
3,116 
2,093 
1,160 
Net income attributable to noncontrolling interests
 
 
(839)
(796)
(329)
Net income attributable to Newmont stockholders
812 
558 
2,277 
1,297 
831 
Operating activities:
 
 
 
 
 
Net income
 
 
3,116 
2,093 
1,160 
Adjustments
 
 
818 
1,048 
864 
Net change in operating assets and liabilities
 
 
(754)
(227)
(627)
Net cash provided from (used in) continuing operations
 
 
3,180 
2,914 
1,397 
Net cash used in discontinued operations
 
 
(13)
33 
(104)
Net cash provided from (used in) operations
 
 
3,167 
2,947 
1,293 
Investing activities:
 
 
 
 
 
Additions to property, plant and mine development
 
 
(1,402)
(1,769)
(1,870)
Acquisitions, net
 
 
(4)
(1,007)
(325)
Proceeds from sale of marketable securities
 
 
17 
50 
Purchases of marketable securities
 
 
(28)
(5)
(17)
Proceeds from sale of other assets
 
 
56 
18 
52 
Other
 
 
(44)
(35)
(36)
Net Cash Provided By Used In Investing Activities Continuing Operations
 
 
(1,419)
(2,781)
(2,146)
Cash Provided By Used In Investing Activities Discontinued Operations
 
 
(11)
Net cash used in investing activities
 
 
(1,419)
(2,781)
(2,157)
Financing activities:
 
 
 
 
 
Net borrowings (repayments)
 
 
(430)
1,568 
595 
Net intercompany borrowings (repayments)
 
 
Proceeds from stock issuance, net
 
 
60 
1,278 
29 
Sale of subsidiary shares to noncontrolling interests
 
 
229 
638 
Acquisition of subsidiary shares from noncontrolling interests
 
 
(110)
(287)
Dividends paid to noncontrolling interests
 
 
(462)
(394)
(389)
Dividends paid to common stockholders
 
 
(246)
(196)
(182)
Change in restricted cash and other
 
 
44 
(35)
74 
Net cash provided from (used in) financing activities of continuing operations
 
 
(915)
2,572 
127 
Net cash used in financing activities of discontinued operations
 
 
(2)
(4)
Net cash provided from (used in) financing activities
 
 
(915)
2,570 
123 
Effect of exchange rate changes on cash
 
 
44 
(54)
Net change in cash and cash equivalents
 
 
841 
2,780 
(795)
Cash and cash equivalents at beginning of period
 
 
3,215 
435 
1,230 
Cash and cash equivalents at end of period
4,056 
3,215 
4,056 
3,215 
435 
Assets
 
 
 
 
 
Cash and cash equivalents
4,056 
3,215 
4,056 
3,215 
435 
Trade receivables
582 
438 
582 
438 
 
Accounts receivable
88 
102 
88 
102 
 
Investments
113 
56 
113 
56 
 
Inventories
658 
493 
658 
493 
 
Stockpiles and ore on leach pads
617 
403 
617 
403 
 
Deferred income tax assets
177 
215 
177 
215 
 
Other current assets
962 
900 
962 
900 
 
Current assets
7,253 
5,822 
7,253 
5,822 
 
Property, plant and mine development, net
12,907 
12,370 
12,907 
12,370 
 
Long-term investments
1,568 
1,186 
1,568 
1,186 
 
Investments in subsidiaries
 
Stockpiles and ore on leach pads
1,757 
1,502 
1,757 
1,502 
 
Deferred income tax assets
1,437 
937 
1,437 
937 
 
Other long-term assets
741 
482 
741 
482 
 
Total assets
25,663 
22,299 
25,663 
22,299 
 
Liabilities
 
 
 
 
 
Debt
259 
157 
259 
157 
 
Accounts payable
427 
396 
427 
396 
 
Employee-related benefits
288 
250 
288 
250 
 
Income and mining taxes
355 
200 
355 
200 
 
Other current liabilities
1,418 
1,317 
1,418 
1,317 
 
Current liabilities
2,747 
2,320 
2,747 
2,320 
 
Debt
4,182 
4,652 
4,182 
4,652 
 
Reclamation and remediation liabilities
984 
805 
984 
805 
 
Deferred income tax liabilities
1,488 
1,341 
1,488 
1,341 
 
Employee-related benefits
325 
381 
325 
381 
 
Other long-term liabilities
221 
187 
221 
187 
 
Total liabilities
9,947 
9,686 
9,947 
9,686 
 
Equity
 
 
 
 
 
Preferred stock
 
Common stock
778 
770 
778 
770 
 
Additional paid-in capital
8,279 
8,158 
8,279 
8,158 
 
Accumulated other comprehensive income
1,108 
626 
1,108 
626 
 
Retained earnings
3,180 
1,149 
3,180 
1,149 
 
Newmont stockholders' equity
13,345 
10,703 
13,345 
10,703 
 
Noncontrolling interests
2,371 
1,910 
2,371 
1,910 
 
Total equity
15,716 
12,613 
15,716 
12,613 
8,661 
Total liabilities and equity
25,663 
22,299 
25,663 
22,299 
 
Condensed Consolidating Financial Statements (Textuals)
 
 
 
 
 
Percent ownership of Newmont USA by Newmont Mining Corporation
0.56 
0.63 
0.56 
0.63 
0.8 
Newmont Mining Corporation [Member]
 
 
 
 
 
Condensed Consolidating Statement of Income
 
 
 
 
 
Sales
 
 
Costs and expenses
 
 
 
 
 
Costs applicable to sales (1)
 
 
Amortization
 
 
Reclamation and remediation
 
 
Exploration
 
 
Advanced projects, research and development
 
 
General and administrative
 
 
Write-down of property, plant and mine development
 
 
Other expense, net
 
 
Total costs and expenses
 
 
Other income (expense)
 
 
 
 
 
Other income, net
 
 
(4)
(11)
(40)
Interest income-intercompany
 
 
161 
90 
278 
Interest expense-intercompany
 
 
(11)
(9)
(8)
Interest expense, net of capitalized interest of $21, $111 and $47, respectively
 
 
(246)
(65)
(74)
Total other income (expense)
 
 
(100)
156 
Income before income and mining tax and other items
 
 
(100)
(4)
155 
Income and mining tax expense
 
 
479 
(55)
Equity income (loss) of affiliates
 
 
1,926 
1,316 
718 
Income from continuing operations
 
 
2,305 
1,313 
818 
Income from discontinued operations
 
 
(28)
(16)
13 
Net income
 
 
2,277 
1,297 
831 
Net income attributable to noncontrolling interests
 
 
Net income attributable to Newmont stockholders
 
 
2,277 
1,297 
831 
Operating activities:
 
 
 
 
 
Net income
 
 
2,277 
1,297 
831 
Adjustments
 
 
(600)
75 
49 
Net change in operating assets and liabilities
 
 
(57)
135 
17 
Net cash provided from (used in) continuing operations
 
 
1,620 
1,507 
897 
Net cash used in discontinued operations
 
 
Net cash provided from (used in) operations
 
 
1,620 
1,507 
897 
Investing activities:
 
 
 
 
 
Additions to property, plant and mine development
 
 
Acquisitions, net
 
 
(8)
Proceeds from sale of marketable securities
 
 
Purchases of marketable securities
 
 
Proceeds from sale of other assets
 
 
Other
 
 
Net Cash Provided By Used In Investing Activities Continuing Operations
 
 
 
 
Cash Provided By Used In Investing Activities Discontinued Operations
 
 
 
 
Net cash used in investing activities
 
 
(8)
Financing activities:
 
 
 
 
 
Net borrowings (repayments)
 
 
1,722 
757 
Net intercompany borrowings (repayments)
 
 
(1,442)
(4,298)
(1,518)
Proceeds from stock issuance, net
 
 
60 
1,278 
29 
Sale of subsidiary shares to noncontrolling interests
 
 
 
Acquisition of subsidiary shares from noncontrolling interests
 
 
 
Dividends paid to noncontrolling interests
 
 
Dividends paid to common stockholders
 
 
(246)
(196)
(182)
Change in restricted cash and other
 
 
17 
Net cash provided from (used in) financing activities of continuing operations
 
 
 
(1,492)
(897)
Net cash used in financing activities of discontinued operations
 
 
 
Net cash provided from (used in) financing activities
 
 
(1,628)
(1,492)
(897)
Effect of exchange rate changes on cash
 
 
Net change in cash and cash equivalents
 
 
(8)
Cash and cash equivalents at beginning of period
 
 
Cash and cash equivalents at end of period
 
 
Assets
 
 
 
 
 
Cash and cash equivalents
 
 
Trade receivables
 
 
 
Accounts receivable
 
 
2,222 
2,338 
 
Investments
 
 
 
Inventories
 
 
 
Stockpiles and ore on leach pads
 
 
 
Deferred income tax assets
 
 
 
Other current assets
 
 
 
Current assets
 
 
2,222 
2,346 
 
Property, plant and mine development, net
 
 
 
Long-term investments
 
 
 
Investments in subsidiaries
 
 
12,295 
9,842 
 
Stockpiles and ore on leach pads
 
 
 
Deferred income tax assets
 
 
638 
 
Other long-term assets
 
 
2,675 
2,551 
 
Total assets
 
 
17,830 
14,739 
 
Liabilities
 
 
 
 
 
Debt
 
 
 
Accounts payable
 
 
355 
46 
 
Employee-related benefits
 
 
 
Income and mining taxes
 
 
19 
 
Other current liabilities
 
 
56 
58 
 
Current liabilities
 
 
430 
104 
 
Debt
 
 
3,991 
3,928 
 
Reclamation and remediation liabilities
 
 
 
Deferred income tax liabilities
 
 
31 
 
Employee-related benefits
 
 
 
Other long-term liabilities
 
 
375 
338 
 
Total liabilities
 
 
4,801 
4,405 
 
Equity
 
 
 
 
 
Preferred stock
 
 
 
Common stock
 
 
778 
770 
 
Additional paid-in capital
 
 
7,963 
7,789 
 
Accumulated other comprehensive income
 
 
1,108 
626 
 
Retained earnings
 
 
3,180 
1,149 
 
Newmont stockholders' equity
 
 
13,029 
10,334 
 
Noncontrolling interests
 
 
 
Total equity
 
 
13,029 
10,334 
 
Total liabilities and equity
 
 
17,830 
14,739 
 
Convertible Senior Notes Net Of Discount 2012 [Member]
 
 
 
 
 
Equity
 
 
 
 
 
Additional paid-in capital
46 
46 
 
 
 
Convertible Senior Notes Net Of Discount 2014 [Member]
 
 
 
 
 
Equity
 
 
 
 
 
Additional paid-in capital
97 
97 
 
 
 
Convertible Senior Notes Net Of Discount 2017 [Member]
 
 
 
 
 
Equity
 
 
 
 
 
Additional paid-in capital
123 
123 
 
 
 
Newmont USA [Member]
 
 
 
 
 
Condensed Consolidating Statement of Income
 
 
 
 
 
Sales
 
 
6,568 
5,911 
4,638 
Costs and expenses
 
 
 
 
 
Costs applicable to sales (1)
 
 
2,171 
2,128 
2,193 
Amortization
 
 
601 
565 
549 
Reclamation and remediation
 
 
48 
41 
85 
Exploration
 
 
131 
101 
131 
Advanced projects, research and development
 
 
110 
66 
63 
General and administrative
 
 
144 
129 
113 
Write-down of property, plant and mine development
 
 
15 
Other expense, net
 
 
183 
160 
176 
Total costs and expenses
 
 
3,393 
3,196 
3,325 
Other income (expense)
 
 
 
 
 
Other income, net
 
 
29 
27 
112 
Interest income-intercompany
 
 
24 
Interest expense-intercompany
 
 
Interest expense, net of capitalized interest of $21, $111 and $47, respectively
 
 
(27)
(47)
(56)
Total other income (expense)
 
 
(13)
80 
Income before income and mining tax and other items
 
 
3,184 
2,702 
1,393 
Income and mining tax expense
 
 
(1,114)
(781)
(132)
Equity income (loss) of affiliates
 
 
Income from continuing operations
 
 
2,072 
1,926 
1,265 
Income from discontinued operations
 
 
(16)
(6)
Net income
 
 
2,074 
1,910 
1,259 
Net income attributable to noncontrolling interests
 
 
(1,026)
(795)
(347)
Net income attributable to Newmont stockholders
 
 
1,048 
1,115 
912 
Operating activities:
 
 
 
 
 
Net income
 
 
2,074 
1,910 
1,259 
Adjustments
 
 
865 
683 
419 
Net change in operating assets and liabilities
 
 
(512)
(400)
(575)
Net cash provided from (used in) continuing operations
 
 
2,427 
2,193 
1,103 
Net cash used in discontinued operations
 
 
(13)
33 
(123)
Net cash provided from (used in) operations
 
 
2,414 
2,226 
980 
Investing activities:
 
 
 
 
 
Additions to property, plant and mine development
 
 
(721)
(470)
(707)
Acquisitions, net
 
 
(11)
(7)
Proceeds from sale of marketable securities
 
 
Purchases of marketable securities
 
 
(5)
Proceeds from sale of other assets
 
 
16 
15 
17 
Other
 
 
Net Cash Provided By Used In Investing Activities Continuing Operations
 
 
 
 
(697)
Cash Provided By Used In Investing Activities Discontinued Operations
 
 
 
 
(15)
Net cash used in investing activities
 
 
(710)
(466)
(712)
Financing activities:
 
 
 
 
 
Net borrowings (repayments)
 
 
(420)
(154)
(116)
Net intercompany borrowings (repayments)
 
 
(152)
953 
(287)
Proceeds from stock issuance, net
 
 
Sale of subsidiary shares to noncontrolling interests
 
 
229 
638 
 
Acquisition of subsidiary shares from noncontrolling interests
 
 
 
Dividends paid to noncontrolling interests
 
 
(598)
(391)
(385)
Dividends paid to common stockholders
 
 
Change in restricted cash and other
 
 
46 
(48)
48 
Net cash provided from (used in) financing activities of continuing operations
 
 
 
998 
(740)
Net cash used in financing activities of discontinued operations
 
 
 
(2)
(4)
Net cash provided from (used in) financing activities
 
 
(895)
996 
(744)
Effect of exchange rate changes on cash
 
 
(3)
Net change in cash and cash equivalents
 
 
810 
2,757 
(479)
Cash and cash equivalents at beginning of period
 
 
3,067 
310 
789 
Cash and cash equivalents at end of period
 
 
3,877 
3,067 
310 
Assets
 
 
 
 
 
Cash and cash equivalents
 
 
3,877 
3,067 
310 
Trade receivables
 
 
501 
417 
 
Accounts receivable
 
 
802 
673 
 
Investments
 
 
72 
 
Inventories
 
 
388 
307 
 
Stockpiles and ore on leach pads
 
 
513 
331 
 
Deferred income tax assets
 
 
170 
157 
 
Other current assets
 
 
77 
78 
 
Current assets
 
 
6,400 
5,034 
 
Property, plant and mine development, net
 
 
5,364 
5,195 
 
Long-term investments
 
 
25 
26 
 
Investments in subsidiaries
 
 
35 
31 
 
Stockpiles and ore on leach pads
 
 
1,347 
1,323 
 
Deferred income tax assets
 
 
690 
844 
 
Other long-term assets
 
 
496 
357 
 
Total assets
 
 
14,357 
12,810 
 
Liabilities
 
 
 
 
 
Debt
 
 
249 
147 
 
Accounts payable
 
 
1,269 
1,201 
 
Employee-related benefits
 
 
222 
202 
 
Income and mining taxes
 
 
261 
192 
 
Other current liabilities
 
 
373 
281 
 
Current liabilities
 
 
2,374 
2,023 
 
Debt
 
 
135 
659 
 
Reclamation and remediation liabilities
 
 
676 
565 
 
Deferred income tax liabilities
 
 
513 
494 
 
Employee-related benefits
 
 
244 
324 
 
Other long-term liabilities
 
 
56 
75 
 
Total liabilities
 
 
3,998 
4,140 
 
Equity
 
 
 
 
 
Preferred stock
 
 
 
Common stock
 
 
 
Additional paid-in capital
 
 
2,722 
2,709 
 
Accumulated other comprehensive income
 
 
(75)
(125)
 
Retained earnings
 
 
4,850 
3,801 
 
Newmont stockholders' equity
 
 
7,497 
6,385 
 
Noncontrolling interests
 
 
2,862 
2,285 
 
Total equity
 
 
10,359 
8,670 
 
Total liabilities and equity
 
 
14,357 
12,810 
 
Condensed Consolidating Financial Statements (Textuals)
 
 
 
 
 
Percent ownership of Newmont USA by Newmont Mining Corporation
 
 
 
 
Other Subsidiaries [Member]
 
 
 
 
 
Condensed Consolidating Statement of Income
 
 
 
 
 
Sales
 
 
2,972 
1,794 
1,486 
Costs and expenses
 
 
 
 
 
Costs applicable to sales (1)
 
 
1,341 
903 
866 
Amortization
 
 
345 
242 
190 
Reclamation and remediation
 
 
17 
18 
57 
Exploration
 
 
87 
86 
82 
Advanced projects, research and development
 
 
107 
71 
107 
General and administrative
 
 
Write-down of property, plant and mine development
 
 
122 
Other expense, net
 
 
78 
189 
62 
Total costs and expenses
 
 
1,980 
1,514 
1,492 
Other income (expense)
 
 
 
 
 
Other income, net
 
 
84 
72 
51 
Interest income-intercompany
 
 
Interest expense-intercompany
 
 
(162)
(93)
(294)
Interest expense, net of capitalized interest of $21, $111 and $47, respectively
 
 
(6)
(8)
(5)
Total other income (expense)
 
 
(79)
(24)
(248)
Income before income and mining tax and other items
 
 
913 
256 
(254)
Income and mining tax expense
 
 
(221)
(49)
45 
Equity income (loss) of affiliates
 
 
281 
185 
102 
Income from continuing operations
 
 
973 
392 
(107)
Income from discontinued operations
 
 
(30)
Net income
 
 
943 
392 
(104)
Net income attributable to noncontrolling interests
 
 
34 
(77)
10 
Net income attributable to Newmont stockholders
 
 
977 
315 
(94)
Operating activities:
 
 
 
 
 
Net income
 
 
943 
392 
(104)
Adjustments
 
 
(1,625)
(1,216)
(430)
Net change in operating assets and liabilities
 
 
(185)
38 
(69)
Net cash provided from (used in) continuing operations
 
 
(867)
(786)
(603)
Net cash used in discontinued operations
 
 
19 
Net cash provided from (used in) operations
 
 
(867)
(786)
(584)
Investing activities:
 
 
 
 
 
Additions to property, plant and mine development
 
 
(681)
(1,299)
(1,163)
Acquisitions, net
 
 
(4)
(988)
(318)
Proceeds from sale of marketable securities
 
 
17 
50 
Purchases of marketable securities
 
 
(23)
(5)
(17)
Proceeds from sale of other assets
 
 
40 
35 
Other
 
 
(44)
(35)
(36)
Net Cash Provided By Used In Investing Activities Continuing Operations
 
 
 
 
(1,449)
Cash Provided By Used In Investing Activities Discontinued Operations
 
 
 
 
Net cash used in investing activities
 
 
(709)
(2,307)
(1,445)
Financing activities:
 
 
 
 
 
Net borrowings (repayments)
 
 
(10)
(46)
Net intercompany borrowings (repayments)
 
 
1,730 
3,345 
1,805 
Proceeds from stock issuance, net
 
 
Sale of subsidiary shares to noncontrolling interests
 
 
 
Acquisition of subsidiary shares from noncontrolling interests
 
 
(110)
(287)
 
Dividends paid to noncontrolling interests
 
 
(3)
(4)
Dividends paid to common stockholders
 
 
Change in restricted cash and other
 
 
(2)
11 
Net cash provided from (used in) financing activities of continuing operations
 
 
 
3,066 
1,764 
Net cash used in financing activities of discontinued operations
 
 
 
Net cash provided from (used in) financing activities
 
 
1,608 
3,066 
1,764 
Effect of exchange rate changes on cash
 
 
42 
(51)
Net change in cash and cash equivalents
 
 
39 
15 
(316)
Cash and cash equivalents at beginning of period
 
 
140 
125 
441 
Cash and cash equivalents at end of period
 
 
179 
140 
125 
Assets
 
 
 
 
 
Cash and cash equivalents
 
 
179 
140 
125 
Trade receivables
 
 
81 
21 
 
Accounts receivable
 
 
265 
363 
 
Investments
 
 
41 
52 
 
Inventories
 
 
270 
186 
 
Stockpiles and ore on leach pads
 
 
104 
72 
 
Deferred income tax assets
 
 
58 
 
Other current assets
 
 
885 
822 
 
Current assets
 
 
1,832 
1,714 
 
Property, plant and mine development, net
 
 
7,562 
7,193 
 
Long-term investments
 
 
1,543 
1,160 
 
Investments in subsidiaries
 
 
1,909 
1,089 
 
Stockpiles and ore on leach pads
 
 
410 
179 
 
Deferred income tax assets
 
 
109 
93 
 
Other long-term assets
 
 
584 
419 
 
Total assets
 
 
13,949 
11,847 
 
Liabilities
 
 
 
 
 
Debt
 
 
10 
10 
 
Accounts payable
 
 
1,996 
2,413 
 
Employee-related benefits
 
 
66 
48 
 
Income and mining taxes
 
 
75 
 
Other current liabilities
 
 
2,959 
2,949 
 
Current liabilities
 
 
5,106 
5,428 
 
Debt
 
 
56 
65 
 
Reclamation and remediation liabilities
 
 
308 
240 
 
Deferred income tax liabilities
 
 
975 
816 
 
Employee-related benefits
 
 
76 
53 
 
Other long-term liabilities
 
 
2,824 
2,637 
 
Total liabilities
 
 
9,345 
9,239 
 
Equity
 
 
 
 
 
Preferred stock
 
 
61 
61 
 
Common stock
 
 
 
Additional paid-in capital
 
 
3,894 
3,874 
 
Accumulated other comprehensive income
 
 
1,180 
738 
 
Retained earnings
 
 
(1,109)
(2,080)
 
Newmont stockholders' equity
 
 
4,026 
2,593 
 
Noncontrolling interests
 
 
578 
15 
 
Total equity
 
 
4,604 
2,608 
 
Total liabilities and equity
 
 
13,949 
11,847 
 
Eliminations [Member]
 
 
 
 
 
Condensed Consolidating Statement of Income
 
 
 
 
 
Sales
 
 
Costs and expenses
 
 
 
 
 
Costs applicable to sales (1)
 
 
(28)
(23)
(21)
Amortization
 
 
(1)
(1)
(1)
Reclamation and remediation
 
 
Exploration
 
 
Advanced projects, research and development
 
 
(1)
(2)
(4)
General and administrative
 
 
30 
26 
25 
Write-down of property, plant and mine development
 
 
Other expense, net
 
 
Total costs and expenses
 
 
Other income (expense)
 
 
 
 
 
Other income, net
 
 
Interest income-intercompany
 
 
(173)
(102)
(302)
Interest expense-intercompany
 
 
173 
102 
302 
Interest expense, net of capitalized interest of $21, $111 and $47, respectively
 
 
Total other income (expense)
 
 
Income before income and mining tax and other items
 
 
Income and mining tax expense
 
 
Equity income (loss) of affiliates
 
 
(2,206)
(1,522)
(829)
Income from continuing operations
 
 
(2,206)
(1,522)
(829)
Income from discontinued operations
 
 
28 
16 
Net income
 
 
(2,178)
(1,506)
(826)
Net income attributable to noncontrolling interests
 
 
153 
76 
Net income attributable to Newmont stockholders
 
 
(2,025)
(1,430)
(818)
Operating activities:
 
 
 
 
 
Net income
 
 
(2,178)
(1,506)
(826)
Adjustments
 
 
2,178 
1,506 
826 
Net change in operating assets and liabilities
 
 
Net cash provided from (used in) continuing operations
 
 
Net cash used in discontinued operations
 
 
Net cash provided from (used in) operations
 
 
Investing activities:
 
 
 
 
 
Additions to property, plant and mine development
 
 
Acquisitions, net
 
 
Proceeds from sale of marketable securities
 
 
Purchases of marketable securities
 
 
Proceeds from sale of other assets
 
 
Other
 
 
Net Cash Provided By Used In Investing Activities Continuing Operations
 
 
 
 
Cash Provided By Used In Investing Activities Discontinued Operations
 
 
 
 
Net cash used in investing activities
 
 
Financing activities:
 
 
 
 
 
Net borrowings (repayments)
 
 
Net intercompany borrowings (repayments)
 
 
(136)
Proceeds from stock issuance, net
 
 
Sale of subsidiary shares to noncontrolling interests
 
 
 
Acquisition of subsidiary shares from noncontrolling interests
 
 
 
Dividends paid to noncontrolling interests
 
 
136 
Dividends paid to common stockholders
 
 
Change in restricted cash and other
 
 
Net cash provided from (used in) financing activities of continuing operations
 
 
 
Net cash used in financing activities of discontinued operations
 
 
 
Net cash provided from (used in) financing activities
 
 
Effect of exchange rate changes on cash
 
 
Net change in cash and cash equivalents
 
 
Cash and cash equivalents at beginning of period
 
 
Cash and cash equivalents at end of period
 
 
Assets
 
 
 
 
 
Cash and cash equivalents
 
 
Trade receivables
 
 
 
Accounts receivable
 
 
(3,201)
(3,272)
 
Investments
 
 
 
Inventories
 
 
 
Stockpiles and ore on leach pads
 
 
 
Deferred income tax assets
 
 
 
Other current assets
 
 
 
Current assets
 
 
(3,201)
(3,272)
 
Property, plant and mine development, net
 
 
(19)
(18)
 
Long-term investments
 
 
 
Investments in subsidiaries
 
 
(14,239)
(10,962)
 
Stockpiles and ore on leach pads
 
 
 
Deferred income tax assets
 
 
 
Other long-term assets
 
 
(3,014)
(2,845)
 
Total assets
 
 
(20,473)
(17,097)
 
Liabilities
 
 
 
 
 
Debt
 
 
 
Accounts payable
 
 
(3,193)
(3,264)
 
Employee-related benefits
 
 
 
Income and mining taxes
 
 
 
Other current liabilities
 
 
(1,970)
(1,971)
 
Current liabilities
 
 
(5,163)
(5,235)
 
Debt
 
 
 
Reclamation and remediation liabilities
 
 
 
Deferred income tax liabilities
 
 
 
Employee-related benefits
 
 
 
Other long-term liabilities
 
 
(3,034)
(2,863)
 
Total liabilities
 
 
(8,197)
(8,098)
 
Equity
 
 
 
 
 
Preferred stock
 
 
(61)
(61)
 
Common stock
 
 
 
Additional paid-in capital
 
 
(6,300)
(6,214)
 
Accumulated other comprehensive income
 
 
(1,105)
(613)
 
Retained earnings
 
 
(3,741)
(1,721)
 
Newmont stockholders' equity
 
 
(11,207)
(8,609)
 
Noncontrolling interests
 
 
(1,069)
(390)
 
Total equity
 
 
(12,276)
(8,999)
 
Total liabilities and equity
 
 
(20,473)
(17,097)
 
Commitments and Contingencies (Details)
3 Months Ended
Mar. 31,
Year Ended
Dec. 31,
Year Ended
Dec. 31,
2010
2009
2008
3 Months Ended
Mar. 30, 2007
3 Months Ended
Mar. 31, 2006
2010
2010
2009
Dec. 31, 1993
2010
2010
2010
2010
2010
2010
2010
Commitments and Contingencies (Textuals)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued for reclamation obligations relating to mineral properties
 
 
 
 
 
904,000,000 
 
698,000,000 
 
 
 
 
 
 
 
 
Accrued reclamation operating costs current
 
 
 
 
 
46,000,000 
 
36,000,000 
 
 
 
 
 
 
 
 
Accrued obligation associated with former, primarily historic, mining activities
 
 
 
 
 
144,000,000 
 
161,000,000 
 
 
 
 
 
 
 
 
Range of reclamation and remediation liabilities upper limit
 
 
 
 
 
1.64 
 
 
 
 
 
 
 
 
 
 
Range of reclamation and remediation liabilities lower limit
 
 
 
 
 
0.04 
 
 
 
 
 
 
 
 
 
 
Ownership interest in subsidiaries
 
 
 
 
 
0.56 
 
0.63 
 
 
 
 
 
 
 
 
Noncontrolling interest, ownership percentage by noncontrolling owners
 
 
 
 
 
0.2 
 
 
 
 
 
 
 
 
 
 
Expenses made by EPA on the Remedial Investigation/Feasibility Study
 
 
 
 
 
12,000,000 
 
 
 
 
 
 
 
 
 
 
Assumed royalty obligations as a percent of net smelter returns from operations on the Holt Property
 
 
 
 
 
0.013 
 
 
 
 
 
 
 
 
 
 
Grey Eagle EPA expenditures
 
 
 
 
 
3,000,000 
 
 
 
 
 
 
 
 
 
 
Ross Adams US Forest Service expenditures
 
 
 
 
 
300,000 
 
 
 
 
 
 
 
 
 
 
Midnite Mine estimate of possible loss
 
 
 
 
 
150,000,000 
 
 
 
 
 
 
 
 
 
 
Fine paid under protest for spill of elementary mercury
 
 
 
 
 
500,000 
1,740,000 
 
 
 
 
 
 
 
 
 
Percentage of ownership shares by the Indonesian government or Indonesian nationals in PTNNT
0.51 
0.44 
0.37 
0.3 
0.23 
 
 
 
 
 
 
 
 
 
 
 
PT Pukuafu Indah (PTPI) ownership
 
 
 
 
 
0.2 
 
 
 
 
 
 
 
 
 
 
Aggregate interest to be offered
 
 
 
 
 
0.31 
 
 
 
 
 
 
 
 
 
 
Sale and transfer of shares of interest percent
0.07 
0.07 
0.07 
0.07 
0.03 
0.07 
 
0.17 
 
 
 
 
 
 
 
 
PTMDB's ownership in PTNNT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.24 
Advance royalty payments under coal lease made by subsidiary
 
 
 
 
 
390,000,000 
 
 
484,000,000 
 
 
 
 
 
 
 
Amount of leased coal deposits on which subsidiary has title insurance
 
 
 
 
 
240,000,000 
 
 
 
 
 
 
 
 
 
 
Minimum royalty payable
 
 
 
 
 
 
 
 
 
28,000,000 
28,000,000 
28,000,000 
28,000,000 
28,000,000 
251,000,000 
 
Letters of Credit Surety Bonds and Bank Guarantees, outstanding
 
 
 
 
 
1,191,000,000 
 
1,073,000,000 
 
 
 
 
 
 
 
 
Damages to PTPI
 
 
 
 
 
26,000,000 
 
 
 
 
 
 
 
 
 
 
Unaudited Supplementary Data (Details) (USD $)
In Millions, except Per Share data
3 Months Ended
Dec. 31, 2010
3 Months Ended
Sep. 30, 2010
3 Months Ended
Jun. 30, 2010
3 Months Ended
Mar. 31, 2010
3 Months Ended
Dec. 31, 2009
3 Months Ended
Sep. 30, 2009
3 Months Ended
Jun. 30, 2009
3 Months Ended
Mar. 31, 2009
Selected Quarterly Financial Information Abstract
 
 
 
 
 
 
 
 
Sales
$ 2,548 
$ 2,597 
$ 2,153 
$ 2,242 
$ 2,518 
$ 2,049 
$ 1,602 
$ 1,536 
Gross Profit
1,402 
1,447 
1,062 
1,135 
1,417 
1,083 
726 
606 
Income from continuing operations
840 
537 
382 
546 
560 
388 
171 
189 
Income (loss) from discontinued operations
(28)
(2)
(9)
Net income
812 
537 
382 
546 
558 
388 
162 
189 
Income from continuing operations, per common share, basic
1.71 
1.09 
0.78 
1.11 
1.14 
0.79 
0.35 
0.40 
Income from discontinued operations, per common share, basic
(0.06)
(0.02)
Net income per common share, basic
1.65 
1.09 
0.78 
1.11 
1.14 
0.79 
0.33 
0.40 
Income from continuing operations, per common share, diluted
1.67 
1.07 
0.77 
1.11 
1.13 
0.79 
0.35 
0.40 
Income from discontinued operations, per common share, diluted
(0.06)
(0.02)
Net income per common share, diluted
1.61 
1.07 
0.77 
1.11 
1.13 
0.79 
0.33 
0.40 
Basic weighted-average shares outstanding
493 
493 
492 
491 
491 
490 
490 
472 
Diluted weighted-average shares outstanding
504 
502 
499 
493 
493 
491 
491 
473 
Cash dividends declared per common share
0.15 
0.15 
0.10 
0.10 
0.10 
0.10 
0.10 
0.10 
Closing price of common stock
$ 61.43 
$ 62.81 
$ 61.74 
$ 50.93 
$ 47.31 
$ 44.02 
$ 40.87 
$ 44.76 
Income Tax Benefit From Internal Restructuring [Member]
 
 
 
 
 
 
 
 
Supplementary Data (Textuals)
 
 
 
 
 
 
 
 
Significant after-tax items
(264)
 
 
(127)
 
 
 
 
Signifcant after-tax items per share basic
(0.54)
 
 
(0.26)
 
 
 
 
Net Gain On Asset Sales [Member]
 
 
 
 
 
 
 
 
Supplementary Data (Textuals)
 
 
 
 
 
 
 
 
Significant after-tax items
 
 
(7)
(25)
(14)
 
 
 
Signifcant after-tax items per share basic
 
 
(0.01)
(0.05)
(0.03)
 
 
 
PTNNT Community Contribution [Member]
 
 
 
 
 
 
 
 
Supplementary Data (Textuals)
 
 
 
 
 
 
 
 
Significant after-tax items
 
 
 
13 
 
 
 
 
Signifcant after-tax items per share basic
 
 
 
0.03 
 
 
 
 
Boddington Acquisition Costs [Member]
 
 
 
 
 
 
 
 
Supplementary Data (Textuals)
 
 
 
 
 
 
 
 
Significant after-tax items
 
 
 
 
 
 
42 
Signifcant after-tax items per share basic
 
 
 
 
 
 
0.08 
0.01 
Boddington Contingent Consideration [Member]
 
 
 
 
 
 
 
 
Supplementary Data (Textuals)
 
 
 
 
 
 
 
 
Significant after-tax items
 
 
 
 
15 
 
 
 
Signifcant after-tax items per share basic
 
 
 
 
0.03 
 
 
 
Workforce Reduction [Member]
 
 
 
 
 
 
 
 
Supplementary Data (Textuals)
 
 
 
 
 
 
 
 
Significant after-tax items
 
 
 
 
 
 
 
Signifcant after-tax items per share basic
 
 
 
 
 
 
 
0.02 
Impairment [Member]
 
 
 
 
 
 
 
 
Supplementary Data (Textuals)
 
 
 
 
 
 
 
 
Significant after-tax items
 
 
 
 
 
 
 
Signifcant after-tax items per share basic
 
 
 
 
 
 
 
0.01 
Subsequent Events (Details) (CAD $)
In Millions
Year Ended
Dec. 31, 2010
Per share cost of acquisition [Member]
 
Subsequent Events (Textuals)
 
Subsequent Event Amount
$ 14 
Expected cost of acquisition [Member]
 
Subsequent Events (Textuals)
 
Subsequent Event Amount
2,300,000,000 
Break Fee [Member]
 
Subsequent Events (Textuals)
 
Subsequent Event Amount
$ 85,000,000